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From movement to prosperity: Examining the link between domestic migration and business dynamics in US metropolitan areas

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  • Imran Arif

Abstract

Business dynamics—the creation and destruction of businesses—drive economic development, innovation, and income distribution. While business dynamics are linked to migration internationally, this relationship at the U.S. metropolitan level is unclear. We hypothesize that net domestic migration may influence business dynamics by expanding the labor force and increasing local demand, fostering new business creation and incumbent business expansion. Using Internal Revenue Service and IPUMS‐CPS data (1997–2017) for 358 U.S. metros, our fixed‐effects estimates show a positive relationship between net migration and business creation but no significant relationship with business destruction.

Suggested Citation

  • Imran Arif, 2026. "From movement to prosperity: Examining the link between domestic migration and business dynamics in US metropolitan areas," Contemporary Economic Policy, Western Economic Association International, vol. 44(1), pages 70-89, January.
    • Handle: RePEc:bla:coecpo:v:44:y:2026:i:1:p:70-89
    DOI: 10.1111/coep.12694
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