Partisan Entrepreneurship

58 Pages Posted: 7 Apr 2021 Last revised: 26 Jul 2021

See all articles by Joseph Engelberg

Joseph Engelberg

University of California, San Diego (UCSD) - Rady School of Management

Jorge Guzman

Columbia University - Columbia Business School

Runjing Lu

University of Alberta - Department of Finance

William Mullins

University of California, San Diego (UCSD)

Date Written: July 5, 2021

Abstract

Republicans start more firms than Democrats. Using a sample of 27 million party-identified Americans between 1997 and 2017, we find that 8% of Republicans and 5% of Democrats become entrepreneurs. This partisan entrepreneurship gap is time-varying: Republicans increase their relative entrepreneurship during Republican administrations and decrease it during Democratic administrations, amounting to a partisan reallocation of 340,000 new firms over our 21 year sample. We find sharp changes in partisan entrepreneurship around the elections of President Obama and President Trump, and the strongest effects among the most politically active partisans: those that donate and vote.

Keywords: Entrepreneurship, Politics, Partisanship

JEL Classification: G12, G14

Suggested Citation

Engelberg, Joseph and Guzman, Jorge and Lu, Runjing and Mullins, William, Partisan Entrepreneurship (July 5, 2021). Available at SSRN: https://ssrn.com/abstract=3821106 or http://dx.doi.org/10.2139/ssrn.3821106

Joseph Engelberg

University of California, San Diego (UCSD) - Rady School of Management ( email )

9500 Gilman Drive
Rady School of Management
La Jolla, CA 92093
United States

Jorge Guzman

Columbia University - Columbia Business School ( email )

3022 Broadway
New York, NY 10027
United States

Runjing Lu

University of Alberta - Department of Finance ( email )

Edmonton, Alberta T6G 2R3
Canada

William Mullins (Contact Author)

University of California, San Diego (UCSD) ( email )

9500 Gilman Drive
Mail Code 0502
La Jolla, CA 92093-0112
United States

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