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

ABSTRACT 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.