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Migrant STEM Entrepreneurs

Author

Listed:
  • Baum, Christopher F

    () (Boston College, DIW Berlin, and Centre of Excellence for Science and Innovation Studies (CESIS))

  • Dastory, Linda

    () (The Department of Industrial Economics and Management, Royal Institute of Technology)

  • Lööf, Hans

    () (Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology)

  • Stephan, Andreas

    () (Jönköping University, DIW Berlin, and Centre of Excellence for Science and Innovation Studies (CESIS))

Abstract

STEM workers are considered to be key drivers for economic growth in the developed world. Migrant workers play an increasing role in the supply of this occupational category. We study the universe of STEM workers in the Swedish economy over the period 2003-2015 and find that migrants are less likely to form their own business, but those who are entrepreneurs earn income at least as large as that of their native-born counterparts. While the income differential for economic migrants may be partially explained by self-selection, the estimated effect is not significantly different between natives and refugee migrants.

Suggested Citation

  • Baum, Christopher F & Dastory, Linda & Lööf, Hans & Stephan, Andreas, 2018. "Migrant STEM Entrepreneurs," Working Paper Series in Economics and Institutions of Innovation 474, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0474
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    References listed on IDEAS

    as
    1. Sarasvathy, D. K. & Simon, Herbert A. & Lave, Lester, 1998. "Perceiving and managing business risks: differences between entrepreneurs and bankers," Journal of Economic Behavior & Organization, Elsevier, vol. 33(2), pages 207-225, January.
    2. William R. Kerr & Martin Mandorff, 2015. "Social Networks, Ethnicity, and Entrepreneurship," NBER Working Papers 21597, National Bureau of Economic Research, Inc.
    3. Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2010. "How Much Does Immigration Boost Innovation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 31-56, April.
    4. William R. Kerr & William F. Lincoln, 2010. "The Supply Side of Innovation: H-1B Visa Reforms and U.S. Ethnic Invention," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 473-508, July.
    5. William R. Kerr, 2013. "U.S. High-Skilled Immigration, Innovation, and Entrepreneurship: Empirical Approaches and Evidence," NBER Working Papers 19377, National Bureau of Economic Research, Inc.
    6. George J. Borjas & Jeffrey Grogger & Gordon H. Hanson, 2008. "Imperfect Substitution between Immigrants and Natives: A Reappraisal," NBER Working Papers 13887, National Bureau of Economic Research, Inc.
    7. Lofstrom, Magnus & Bates, Timothy & Parker, Simon C., 2014. "Why are some people more likely to become small-businesses owners than others: Entrepreneurship entry and industry-specific barriers," Journal of Business Venturing, Elsevier, vol. 29(2), pages 232-251.
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    More about this item

    Keywords

    STEM; migration; entrepreneurship; income; panel data;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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