Too Cold to Venture There? January Temperature and Immigrant Self-Employment across the United States

Jun Yeong Lee and John Winters

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: Immigrant entrepreneurs are critical to regional and national economies. Immigrants in the USA have higher self-employment rates than natives, and immigrants have made outsized contributions as founders of numerous highly successful firms. However, we document that immigrant self-employment rates vary considerably across areas of the USA. Our main measure is the percentage of immigrant workers in an area who are self-employed; i.e., the self-employment rate for the foreign-born. Areas with colder winter temperatures have especially low self-employment rates among their immigrant populations compared to other areas of the USA. This relationship holds for numerous sub-samples of immigrants and is not driven by any particular group. The relationship persists after controlling for numerous individual and local area characteristics. Immigrant entrepreneurs appear to be especially forward-looking and responsive to warmer January temperature as a locational amenity. The results have important implications about the location choices of immigrant entrepreneurs.

Date: 2021-12-13
New Economics Papers: this item is included in nep-ent, nep-sbm and nep-ure
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Related works:
Journal Article: Too Cold to Venture There? January Temperature and Immigrant Self-Employment Across the United States (2024)
Working Paper: Too Cold to Venture There? January Temperature and Immigrant Self-Employment across the United States (2021)
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