American Economic Review: Insights
ISSN 2640-205X (Print) | ISSN 2640-2068 (Online)
Immigration and Entrepreneurship in the United States
American Economic Review: Insights
vol. 4,
no. 1, March 2022
(pp. 71–88)
Abstract
Immigrants can expand labor supply and compete for jobs with native-born workers. But immigrants may also start new firms, expanding labor demand. This paper uses US administrative data and other data sources to study the role of immigrants in entrepreneurship. We ask how often immigrants start companies, how many jobs these firms create, and how firms founded by native-born individuals compare. A simple model provides a measurement framework for addressing the dual roles of immigrants as founders and workers. The findings suggest that immigrants act more as "job creators" than "job takers" and play outsized roles in US high-growth entrepreneurship.Citation
Azoulay, Pierre, Benjamin F. Jones, J. Daniel Kim, and Javier Miranda. 2022. "Immigration and Entrepreneurship in the United States." American Economic Review: Insights, 4 (1): 71–88. DOI: 10.1257/aeri.20200588Additional Materials
JEL Classification
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J22 Time Allocation and Labor Supply
- J23 Labor Demand
- J61 Geographic Labor Mobility; Immigrant Workers
- L26 Entrepreneurship
- M13 New Firms; Startups