<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Using nationally representative data from the United States, the author estimates the causal impact of immigrant entrepreneurship on entrepreneurial propensities of natives. The author draws data from the Annual Social and Economic Supplement of the Current Population Survey and uses within-state variation in supply of immigrant entrepreneurs for identification. To address concerns of endogeneity in the supply of immigrant entrepreneurs, the author takes advantage of a quasi-experiment provided by the State Children's Health Insurance Program. While the Ordinary Least Squares estimates indicate a positive effect, the Two Stage Least Squares estimates suggest that, on average, there is no significant effect of immigrant entrepreneurs on native entrepreneurship. Moreover, there is no net effect on subgroups of natives separated by skill level. There is also some evidence that immigrant entrepreneurs may “crowd-in” Blacks into certain types of self-employment. These results are in contrast to the significant negative impact suggested by the previous literature.</p>
</abstract>

Using nationally representative data from the United States, the author estimates the causal impact of immigrant entrepreneurship on entrepreneurial propensities of natives. The author draws data from the Annual Social and Economic Supplement of the Current Population Survey and uses within-state variation in supply of immigrant entrepreneurs for identification. To address concerns of endogeneity in the supply of immigrant entrepreneurs, the author takes advantage of a quasi-experiment provided by the State Children's Health Insurance Program. While the Ordinary Least Squares estimates indicate a positive effect, the Two Stage Least Squares estimates suggest that, on average, there is no significant effect of immigrant entrepreneurs on native entrepreneurship. Moreover, there is no net effect on subgroups of natives separated by skill level. There is also some evidence that immigrant entrepreneurs may “crowd-in” Blacks into certain types of self-employment. These results are in contrast to the significant negative impact suggested by the previous literature.

Supply of immigrant entrepreneurs and native entrepreneurship

IZA Journal of Development and Migration

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Supply of immigrant entrepreneurs and native entrepreneurship"}

Using nationally representative data from the United States, the author estimates the causal impact of immigrant entrepreneurship on entrepreneurial...

Supply of immigrant entrepreneurs and native entrepreneurship

Published Online: Apr 29, 2021

Page range: -

Accepted: Feb 10, 2021

DOI: https://doi.org/10.2478/izajodm-2021-0004

Keywords
entrepreneurship, immigration, self-employment, incorporated and unincorporated businesses, State Children's Health Insurance Program

© 2021 Keshar M. Ghimire, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Supply of immigrant entrepreneurs and native entrepreneurship

Published Online: Apr 29, 2021

Page range: -

Accepted: Feb 10, 2021

DOI: https://doi.org/10.2478/izajodm-2021-0004

Keywordsentrepreneurship, immigration, self-employment, incorporated and unincorporated businesses, State Children's Health Insurance Program

© 2021 Keshar M. Ghimire, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
entrepreneurship, immigration, self-employment, incorporated and unincorporated businesses, State Children's Health Insurance Program