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On Immigration and Native Entrepreneurship

Author

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  • Duleep, Harriet
  • Jaeger, David A.
  • McHenry, Peter

Abstract

We present a novel theory that immigrants facilitate innovation and entrepreneurship by being willing and able to invest in new skills. Immigrants whose human capital is not immediately transferable to the host country face lower opportunity costs of investing in new skills or methods and will be more exible in their human capital investments than observationally equivalent natives. Areas with large numbers of immigrants may therefore lead to more entrepreneurship and innovation, even among natives. We provide empirical evidence from the United States that is consistent with the theory's predictions.

Suggested Citation

  • Duleep, Harriet & Jaeger, David A. & McHenry, Peter, 2021. "On Immigration and Native Entrepreneurship," GLO Discussion Paper Series 846, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:846
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    References listed on IDEAS

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    1. Carl Lin, 2013. "Earnings Gap, Cohort Effect and Economic Assimilation of Immigrants from Mainland China, Hong Kong, and Taiwan in the United States," Review of International Economics, Wiley Blackwell, vol. 21(2), pages 249-265, May.
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    Cited by:

    1. Ajzenman, Nicolás & Aksoy, Cevat Giray & Guriev, Sergei, 2022. "Exposure to transit migration: Public attitudes and entrepreneurship," Journal of Development Economics, Elsevier, vol. 158(C).

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    More about this item

    Keywords

    immigration; innovation; entrepreneurship; human capital;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other
    • 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

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