Return Migrants: The Rise of New Entrepreneurs in Rural China

SummaryThis paper analyzes return migrants’ self-employment decision upon their return to their home villages, by using an original rural household survey conducted in Wuwei County (Anhui province, China) in 2008. We find that return migrants are more likely to be self-employed than nonmigrants, and that both return savings and the frequency of job changes during migration increase the likelihood for return migrants to become self-employed. These findings suggest that (a) return migration can help revitalize rural economies and alleviate poverty in less developed areas in China, and (b) repatriated capital is a key, stimulating factor in promoting rural entrepreneurial activities.