The Relationship Between Pre- and Post-Migration Self-Employment: Evidence From Italy and Spain

The home-country self-employment hypothesis, widely accepted in migration research, posits that immigrants from countries with high self-employment rates are more likely to become self-employed. However, supporting evidence remains limited. Recent studies highlight the importance of individual pre-migration experience, but such evidence is scarce due to data constraints and the predominance of single-country analyses. Using unique survey data with retrospective pre-migration employment information, this paper examines the link between pre-and post-migration self-employment in Italy and Spain, two countries where self-employment is historically widespread. We analyse both home-country self-employment rates and individual pre-migration experience as determinants of immigrants' self-employment, and we extend the analysis to overall employment outcomes. Pre-migration self-employment significantly increases the likelihood of self-employment after migration but does not improve general employment prospects. By contrast, home-country self-employment rates show no explanatory power, while regional variations have only a minor one, underscoring the primacy of individual experience over cultural or contextual factors.