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Immigration Policy and Entrepreneurship

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Author Info

  • Mahuteau, Stéphane

    ()
    (NILS, Flinders University)

  • Piracha, Matloob

    ()
    (University of Kent)

  • Tani, Massimiliano

    ()
    (IZA)

  • Vaira-Lucero, Matias

    ()
    (Macquarie University, Sydney)

Abstract

This paper analyses the impact of a change in Australia's immigration policy, introduced in the mid-1990s, on migrants' probability of becoming entrepreneurs. The policy change consists of stricter entry requirements and restrictions to welfare entitlements. The results indicate that those who entered under more stringent conditions – the second cohort – have a higher probability to become self-employed, than those in the first cohort. We also find significant time and region effects. Contrary to some existing evidence, time spent in Australia positively affects the probability to become self-employed. We discuss the intuitions for the results and their policy implications.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6238.

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Length: 22 pages
Date of creation: Dec 2011
Date of revision:
Publication status: published in: International Migration, 2013, [Online First]
Handle: RePEc:iza:izadps:dp6238

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Related research

Keywords: entrepreneurship; immigration policy; migration;

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  1. Green, Colin & Kler, Parvinder & Leeves, Gareth, 2007. "Immigrant overeducation: Evidence from recent arrivals to Australia," Economics of Education Review, Elsevier, vol. 26(4), pages 420-432, August.
  2. Constant, Amelie F. & Zimmermann, Klaus F., 2004. "The Making of Entrepreneurs in Germany: Are Native Men and Immigrants Alike?," IZA Discussion Papers 1440, Institute for the Study of Labor (IZA).
  3. Chiswick, Barry R. & Miller, Paul W., 2004. "Language Skills and Immigrant Adjustment: What Immigration Policy Can Do!," IZA Discussion Papers 1419, Institute for the Study of Labor (IZA).
  4. Michael Hout & Harvey S. Rosen, 1999. "Self-Employment, Family Background, and Race," NBER Working Papers 7344, National Bureau of Economic Research, Inc.
  5. Christian Dustmann & Albrecht Glitz & Tommaso Frattini, 2008. "The labour market impact of immigration," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 478-495, Autumn.
  6. Mahuteau, Stéphane & Junankar, Pramod N. (Raja), 2008. "Do Migrants Get Good Jobs in Australia? The Role of Ethnic Networks in Job Search," IZA Discussion Papers 3489, Institute for the Study of Labor (IZA).
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