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Immigration causes American businesses to fail and that is a good thing

Author

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  • Ryan H Murphy
  • Rick Weber

Abstract

Purpose - – The purpose of this paper is to investigate the relationship between immigration rates and business failure, where business failure is viewed as a proxy for the presence of entrepreneurship. Design/methodology/approach - – It employs a panel data approach to the USA, using the percentage of the population that is foreign born as the explanatory variable for the business failure rate ten years later. Findings - – The authors find the effect to be large, with a one standard deviation increase in the foreign born population corresponding to a 1.09 standard deviation increase in business failure rate, and the authors argue, entrepreneurship. Originality/value - – The effect the authors find is very large though perhaps also counterintuitive.

Suggested Citation

  • Ryan H Murphy & Rick Weber, 2016. "Immigration causes American businesses to fail and that is a good thing," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 5(1), pages 63-72, April.
    • Handle: RePEc:eme:jepppp:v:5:y:2016:i:1:p:63-72
    DOI: 10.1108/JEPP-01-2015-0002
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