Immigration and entrepreneurship in Europe: cross-country evidence

Cesare Riillo and Chiara Peroni

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the empirical link between migrations and entrepreneurship in European countries, for the first time drawing from a large sample of individuals sourced from the cross-country GEM survey. Specifically, the paper studies the impact of individuals' immigration status on entrepreneurial outcomes at all stages of the entrepreneurial process: interest in starting a new business, effectively starting, running a new business and managing an established company. The analysis uses a sequential probit model with sample selection to capture the dependence between entrepreneurial stages. It also distinguishes between different typologies of entrepreneurs (necessity and opportunity-driven, European and non-European; recent and long-standing immigrants). Additionally, it implements heteroscedasticity based instruments to address potential endogeneity issues. The study finds evidence that immigration has a positive effect on entrepreneurship. Immigrants are more willing to engage in entrepreneurship. Among those who started a new business, however, immigrants have lower chances than natives to succeed in the following stages of entrepreneurship.

Keywords: entrepreneurship; immigration; sequential logit; probit; sample selection; GEM (search for similar items in EconPapers)
JEL-codes: C25 D0 F22 J15 J6 J61 O15 (search for similar items in EconPapers)
Date: 2022-09-12
New Economics Papers: this item is included in nep-ent, nep-int, nep-mig, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:114580

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