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Partisan Entrepreneurship

Author

Listed:
  • Joseph Engelberg
  • Jorge Guzman
  • Runjing Lu
  • William Mullins

Abstract

Republicans start more firms than Democrats. In a sample of 40 million party-identified Americans between 2005 and 2017, we find that 6% of Republicans and 4% of Democrats become entrepreneurs. This partisan entrepreneurship gap is time-varying: Republicans increase their relative entrepreneurship during Republican administrations and decrease it during Democratic administrations, amounting to a partisan reallocation of 170,000 new firms over our 13-year sample. We find sharp changes in partisan entrepreneurship around the elections of President Obama and President Trump, and the strongest effects among the most politically active partisans: those that donate and vote.

Suggested Citation

  • Joseph Engelberg & Jorge Guzman & Runjing Lu & William Mullins, 2022. "Partisan Entrepreneurship," NBER Working Papers 30249, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30249
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    Cited by:

    1. Guirola, Luis, 2025. "Economic expectations under the shadow of party polarization: Evidence from 135 government changes," European Economic Review, Elsevier, vol. 171(C).
    2. Dagostino, Ramona & Gao, Janet & Ma, Pengfei, 2023. "Partisanship in loan pricing," Journal of Financial Economics, Elsevier, vol. 150(3).
    3. Pandey, Vivek & Shen, Xingyu & Wu, Joanna Shuang, 2025. "Partisan regulatory actions: Evidence from the SEC," Journal of Accounting and Economics, Elsevier, vol. 80(1).
    4. Ke, Da, 2024. "Left behind: Partisan identity, stock market participation, and wealth inequality," Journal of Banking & Finance, Elsevier, vol. 164(C).
    5. Bonaparte, Yosef & Khalaf, Sarah & Korniotis, George M., 2023. "Financial decisions of minorities post-2008," Journal of Banking & Finance, Elsevier, vol. 149(C).

    More about this item

    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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