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Legalizing Entrepreneurship

Author

Listed:
  • Dany Bahar
  • Bo Cowgill
  • Jorge Guzman

Abstract

We use administrative data linked to the complete formal business registry to study a 2018 policy shift in Colombia that made nearly half a million Venezuelan undocumented migrants eligible for a resident visa. Immigrants who receive the visa increase their economic activity in the form of higher entrepreneurship by a factor as high as 12, bringing it to parity with native Colombians four years later. To establish causal estimates, we develop a novel extension of a regression discontinuity design. Our design uses variation in the running-variable (coming from rain) to instrument for migrants’ choices to apply for visas.

Suggested Citation

  • Dany Bahar & Bo Cowgill & Jorge Guzman, 2022. "Legalizing Entrepreneurship," NBER Working Papers 30624, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:30624
    Note: LE PR
    as

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    File URL: http://www.nber.org/papers/w30624.pdf
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    More about this item

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • K37 - Law and Economics - - Other Substantive Areas of Law - - - Immigration Law
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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