Effects of Immigration on Native Entrepreneurship in the U.S

Bulent Unel ()

Departmental Working Papers from Department of Economics, Louisiana State University

Abstract: This paper investigates the causal impact of immigration on the likelihood of entry and exit of entrepreneurs among U.S.-born individuals. Using Current Population Survey data from the U.S. Census over the 2000-2016 period, I find that immigration had a negative effect on entry of native entrepreneurs, while having no impact on their exit. Exploring heterogeneity across individuals, I find that immigration had a negative and statistically significant effect on both entry and exit of female entrepreneurs, but has no effects on male entrepreneurs. Specifically, a 10-percent increase in the share of immigrants in the population lowers the entry and exit rates of female entrepreneurs by 10 percent and 5 percent, respectively, relative to the sample mean. Estimates imply that the net effect of immigration on female entrepreneurship is negative, but economically small.

Date: 2018-01
New Economics Papers: this item is included in nep-ent and nep-mig
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:lsu:lsuwpp:2018-01

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