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Immigration Policy and Entrepreneurship

Stephane Mahuteau (), Matloob Piracha (), Max Tani and Matias Vaira-Lucero

No 6238, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper analyses the impact of a change in Australia's immigration policy, introduced in the mid-1990s, on migrants' probability of becoming entrepreneurs. The policy change consists of stricter entry requirements and restrictions to welfare entitlements. The results indicate that those who entered under more stringent conditions – the second cohort – have a higher probability to become self-employed, than those in the first cohort. We also find significant time and region effects. Contrary to some existing evidence, time spent in Australia positively affects the probability to become self-employed. We discuss the intuitions for the results and their policy implications.

Keywords: entrepreneurship; immigration policy; migration (search for similar items in EconPapers)
JEL-codes: C34 J24 J61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent and nep-mig
Date: 2011-12
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Published in: International Migration, 2014, 52(2), 53–65

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