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Immigration Policy and Entrepreneurship

Author

Listed:
  • Mahuteau, Stephane

    (University of Adelaide)

  • Piracha, Matloob

    (University of Kent)

  • Tani, Massimiliano

    (University of New South Wales)

  • Vaira-Lucero, Matias

    (Macquarie University, Sydney)

Abstract

This paper analyses the impact of a change in Australia's immigration policy, introduced in the mid-1990s, on migrants' probability of becoming entrepreneurs. The policy change consists of stricter entry requirements and restrictions to welfare entitlements. The results indicate that those who entered under more stringent conditions – the second cohort – have a higher probability to become self-employed, than those in the first cohort. We also find significant time and region effects. Contrary to some existing evidence, time spent in Australia positively affects the probability to become self-employed. We discuss the intuitions for the results and their policy implications.

Suggested Citation

  • Mahuteau, Stephane & Piracha, Matloob & Tani, Massimiliano & Vaira-Lucero, Matias, 2011. "Immigration Policy and Entrepreneurship," IZA Discussion Papers 6238, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6238
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    References listed on IDEAS

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    1. Green, Colin & Kler, Parvinder & Leeves, Gareth, 2007. "Immigrant overeducation: Evidence from recent arrivals to Australia," Economics of Education Review, Elsevier, vol. 26(4), pages 420-432, August.
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    More about this item

    Keywords

    migration; immigration policy; entrepreneurship;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • 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

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