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Effects of Immigration on Native Entrepreneurship in the U.S

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Abstract

This paper investigates the causal impact of immigration on the likelihood of entry and exit of entrepreneurs among U.S.-born individuals. Using Current Population Survey data from the U.S. Census over the 2000-2016 period, I find that immigration had a negative effect on entry of native entrepreneurs, while having no impact on their exit. Exploring heterogeneity across individuals, I find that immigration had a negative and statistically significant effect on both entry and exit of female entrepreneurs, but has no effects on male entrepreneurs. Specifically, a 10-percent increase in the share of immigrants in the population lowers the entry and exit rates of female entrepreneurs by 10 percent and 5 percent, respectively, relative to the sample mean. Estimates imply that the net effect of immigration on female entrepreneurship is negative, but economically small.

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  • Bulent Unel, 2018. "Effects of Immigration on Native Entrepreneurship in the U.S," Departmental Working Papers 2018-01, Department of Economics, Louisiana State University.
    • Handle: RePEc:lsu:lsuwpp:2018-01
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    14. Anindo Sarker & Bulent Unel, 2017. "The Impact of Bank Expansion on Self-Employed Business Owners: Evidence from US States," Departmental Working Papers 2017-06, Department of Economics, Louisiana State University.
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    Cited by:

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    2. Ajzenman, Nicolás & Aksoy, Cevat Giray & Guriev, Sergei, 2022. "Exposure to transit migration: Public attitudes and entrepreneurship," Journal of Development Economics, Elsevier, vol. 158(C).
    3. Nicolás Ajzenman & Cevat Giray Aksoy & Sergei Guriev, 2020. "Exposure to Transit Migration, Public Attitudes and Entrepreneurship," Department of Economics Working Papers wp_gob_2020_02, Universidad Torcuato Di Tella.

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