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Immigrant Business Owner Activity in the Pandemic and Recovery

Author

Listed:
  • Robert Fairlie
  • Robert W. Fairlie

Abstract

The paper provides a descriptive analysis of both the early impacts of COVID on business activity among immigrants and the economic recovery over the next few years. The findings indicate that immigrant business owners were disproportionately affected by COVID in the first month of the pandemic when mandated shutdowns through social distancing restrictions were the most severe. Immigrant business activity recovered somewhat inconsistently through the end of 2020 but started a longer-term upward trend in both absolute terms and relative terms over the next few years. By the end of 2024, the number of active immigrant business owners increased to 3.9 million compared with 3.0 million just prior to the start of the pandemic. Growth in the Construction, Transportation, Professional and Business Services, and Financial Activities industry groups fueled total growth in immigrant business activity during the recovery period. The percentage of the labor force owning an active business is 3.5 percentage points higher than U.S. born active business ownership rates, which is larger than the 1.8 percentage point gap before the pandemic started.

Suggested Citation

  • Robert Fairlie & Robert W. Fairlie, 2026. "Immigrant Business Owner Activity in the Pandemic and Recovery," CESifo Working Paper Series 12655, CESifo.
    • Handle: RePEc:ces:ceswps:_12655
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp12655.pdf
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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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