BEYOND THE LOCAL MARKET: MEXICAN CROSS-BORDER ENTREPRENEURS IN THE UNITED STATES

Abstract

This study examines the characteristics of self-employed workers who reside in Mexico but work in the United States and the factors behind their decision to become cross-border entrepreneurs. This group is compared to entrepreneurs who live and operate in Mexico. Based on census data from Mexico, it is observed that cross-border entrepreneurs are older and more educated, and have stronger ties to the United States, shorter workweeks and higher hourly and monthly earnings than self-employed workers who live and work in Mexico. A series of probit models show that years of schooling, having previously resided in the United States and having an adult in the household who was born in the United States increase the likelihood of becoming a cross-border entrepreneur. Ordinary least squares earnings regressions show that years of schooling and years of work experience are positively associated with the earnings of entrepreneurs operating in Mexico, but not with those of cross-border entrepreneurs.