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Effects of immigration on native entrepreneurship in the US: an analysis of self-employment over 1980–2018

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  • Bulent Unel

    (Louisiana State University)

Abstract

This paper examines the causal impact of immigration on entrepreneurship among US-born non-Hispanic whites in non-agricultural private sectors from 1980 to 2018. Using self-employment as a proxy for entrepreneurship and distinguishing between incorporated individuals and unincorporated self-employed workers, I find a sizable negative impact of immigration on native self-employment. Importantly, this effect is consistent across incorporated and unincorporated self-employment and remains robust across demographic groups based on gender, age, and education. Results are robust to the choice of controls and estimation methods.

Suggested Citation

  • Bulent Unel, 2025. "Effects of immigration on native entrepreneurship in the US: an analysis of self-employment over 1980–2018," Small Business Economics, Springer, vol. 64(2), pages 755-773, February.
    • Handle: RePEc:kap:sbusec:v:64:y:2025:i:2:d:10.1007_s11187-024-00914-2
    DOI: 10.1007/s11187-024-00914-2
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    More about this item

    Keywords

    Entrepreneurship; Immigration; Self-employment; Shift-share instrument;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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