Immigration and new firm formation: Evidence from a quasi-experimental setting in Germany

Vera Jahn and Max Steinhardt ()

No 787, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: This paper analyzes in how far immigration affects firm formation at the regional level. For this purpose, we exploit a placement policy in Germany in the 1990s for immigrants of German origin from Eastern Europe and the former Soviet Union. Our panel regressions suggest that immigration had a positive impact on regional firm formation. The most likely mechanisms driving this result are labor supply-side effects and positive implications of cultural diversity. Overall, our paper demonstrates that immigration induced changes in local labor supply can partially be absorbed by the creation of firms.

Keywords: immigration; placement policy; economic impact; firms (search for similar items in EconPapers)
JEL-codes: F22 L26 R11 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-eur, nep-geo, nep-int, nep-lab, nep-mig, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:787

DOI: 10.4419/86788915

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