On Immigration and Native Entrepreneurship

35 Pages Posted: 16 Mar 2021 Last revised: 31 Mar 2021

See all articles by Harriet Orcutt Duleep

Harriet Orcutt Duleep

College of William & Mary - Policy School

David A. Jaeger

University of St. Andrews - School of Economics and Finance; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute); University College London - CReAM - Centre for Research and Analysis of Migration

Peter McHenry

College of William and Mary

Multiple version iconThere are 2 versions of this paper

Date Written: March 2021

Abstract

We present a novel theory that immigrants facilitate innovation and entrepreneurship by being willing and able to invest in new skills. Immigrants whose human capital is not immediately transferable to the host country face lower opportunity costs of investing in new skills or methods and will be more flexible in their human capital investments than observationally equivalent natives. Areas with large numbers of immigrants may therefore lead to more entrepreneurship and innovation, even among natives. We provide empirical evidence from the United States that is consistent with the theory's predictions.

JEL Classification: J15, J24, J39, J61, L26

Suggested Citation

Duleep, Harriet Orcutt and Jaeger, David A. and McHenry, Peter, On Immigration and Native Entrepreneurship (March 2021). CEPR Discussion Paper No. DP15920, Available at SSRN: https://ssrn.com/abstract=3805343

Harriet Orcutt Duleep (Contact Author)

College of William & Mary - Policy School ( email )

P.O. Box 8795
Williamsburg, VA 23185
United States

David A. Jaeger

University of St. Andrews - School of Economics and Finance ( email )

The Scores, Castlecliff
St. Andrews, Fife KY16 8RD
United Kingdom

HOME PAGE: http://www.djaeger.org

National Bureau of Economic Research (NBER) ( email )

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Centre for Economic Policy Research (CEPR) ( email )

London
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IZA Institute of Labor Economics

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Germany

HOME PAGE: http://www.iza.org

CESifo (Center for Economic Studies and Ifo Institute) ( email )

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Germany

University College London - CReAM - Centre for Research and Analysis of Migration ( email )

Drayton House
30 Gordon Street
London, WC1H 0AX
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Peter McHenry

College of William and Mary ( email )

United States

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