Working Paper: CEPR ID: DP18532
Authors: Mrinal Mishra; Jonathan Fu; Steven Ongena
Abstract: We assess the association between the local telling of the American Dream story and local entrepreneurship. We use textual analysis on articles related to the American Dream that were published in local newspapers and assess how more positive telling of the story associates with local entrepreneurial dynamism. We find that telling the story spurs local entrepreneurship, in total number and per capita. A one standard deviation more in articles boasts entrepreneurship by half a standard deviation, and their positivity boosts this effect. A positive tone also affects the choice of the type of startup.
Keywords: American Dream; Entrepreneurship; Narrative
JEL Codes: L26; M2; N8
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| positivity of the narrative (D78) | level of entrepreneurship (L26) |
| number of articles discussing the American Dream (P17) | level of entrepreneurship (L26) |
| positivity of the narrative (D78) | probability of new ecommerce startups (M13) |
| positivity of the narrative (D78) | number of new businesses formed (M13) |