Working Paper: NBER ID: w27778
Authors: Pierre Azoulay; Benjamin Jones; J. Daniel Kim; Javier Miranda
Abstract: Immigration can expand labor supply and create greater competition for native-born workers. But immigrants may also start new firms, expanding labor demand. This paper uses U.S. administrative data and other data resources to study the role of immigrants in entrepreneurship. We ask how often immigrants start companies, how many jobs these firms create, and how these firms compare with those founded by U.S.-born individuals. A simple model provides a measurement framework for addressing the dual roles of immigrants as founders and workers. The findings suggest that immigrants act more as "job creators" than "job takers" and that non-U.S. born founders play outsized roles in U.S. high-growth entrepreneurship.
Keywords: immigration; entrepreneurship; labor demand; job creation
JEL Codes: J15; L26; M13; O3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Immigrant status (K37) | Entrepreneurial activity (L26) |
| Immigrant-founded firms (J61) | Job creation (J23) |
| Higher entrepreneurial acumen (M13) | More jobs (J23) |
| Immigrant-founded firms (J61) | Labor demand (J23) |
| Total employment created by immigrant-founded firms (J69) | Number of immigrants in workforce (J69) |