Essays on Labor Economics and Entrepreneurship

Abstract

This dissertation is composed of two essays that relate topics in the fields of labor economics, migration, experimental economics and entrepreneurship, taking into account a gender perspective. The first essay examines collective remittances, those sent by migrants' associations to be invested in community projects in their hometowns, matched by governmental funds through the Mexican program 3x1 Para Migrantes. This study evaluates the effect of collective remittances on the probability of wanting to migrate, being employed and in the labor force, and on the amount of hours worked of adult men and women in 2002 and 2005 in Mexico. Collective remittances have a positive, albeit modest, impact on the employment and labor force participation of adults in participant municipalities, but no effect on the preferences to migrate. Important differences are observed by type of project executed and by gender and age cohort, with younger men and women benefiting the most from investments in schools and sports facilities. The second essay conducts a series of laboratory experiments to test the hypothesis that, while stress worsens entrepreneurial choices and outcomes for all, it does so more for women than men. Results show that the effects of stress on choice and performance are more negative for women. Experimentally-induced stress causes more long-lasting productivity losses for women, and additional losses for making choices that do not maximize income given one's productivity. The negative treatment effect on women's productivity, choice quality, and earnings is driven by women who experienced negative life events. The mechanisms that affect choices also differ by gender. Men are more likely to present inconsistencies during a series of entrepreneurial decisions, and women to have inaccurate beliefs about their performance.