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Immigration and Entrepreneurship in the United States

Author

Listed:
  • Pierre Azoulay

    (MIT Sloan School of Management, and NBER)

  • Benjamin Jones

    (Northwestern University, and NBER)

  • J. Daniel Kim

    (University of Pennsylvania)

  • Javier Miranda

    (Friedrich-Schiller University Jena and Halle Institute for Economic Research (IWH))

Abstract

Immigrants can expand labor supply and compete for jobs with native-born workers. But immigrants may also start new firms, expanding labor demand. This paper uses U.S. administrative data and other data sources to study the role of immigrants in entrepreneurship. We ask how often immigrants start companies, how many jobs these firms create, and how firms founded by native-born individuals compare. A simple model provides a measurement framework for addressing the dual roles of immigrants as founders and workers. The findings suggest that immigrants act more as "job creators" than "job takers" and play outsized roles in U.S. high-growth entrepreneurship.

Suggested Citation

  • Pierre Azoulay & Benjamin Jones & J. Daniel Kim & Javier Miranda, 2021. "Immigration and Entrepreneurship in the United States," Jena Economic Research Papers 2021-014, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2021-014
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    File URL: http://www2.wiwi.uni-jena.de/Papers/jerp2021/wp_2021_014.pdf
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    More about this item

    Keywords

    Entrepreneurship; immigration; innovation; administrative data; Survey of Business Owners; Fortune 500; job creation; earnings; growth;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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