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Entrepreneurial Migration

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  • Bryan, Kevin
  • Guzman, Jorge

Abstract

We use cross-state business registrations to track the geographic movement of startups with high growth potential. In their first five years, 6.6% percent of these startups move across state borders. Though startup births are concentrated geographically, hubs like Silicon Valley and Boston on net lose startups to entrepreneurial migration. A revealed preference approach nonparametrically identifies the average utility of cities to migrant founders. University towns and startup hubs have low relative utility. This pattern is due neither to vertical sorting nor industrial specialization. The higher-quality startups move to lower-tax, business-friendly cities, while less growth-oriented startups move to low-tax, high-amenity cities.

Suggested Citation

  • Bryan, Kevin & Guzman, Jorge, 2021. "Entrepreneurial Migration," SocArXiv yd3v2_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:yd3v2_v1
    DOI: 10.31219/osf.io/yd3v2_v1
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