Immigration Policy and Entrepreneurship

22 Pages Posted: 31 Dec 2011

See all articles by Stephane Mahuteau

Stephane Mahuteau

Macquarie University - Economics Department

Matloob Piracha

University of Kent - Department of Economics; IZA Institute of Labor Economics

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy; IZA Institute of Labor Economics

Matias Vaira-Lucero

Macquarie University - Faculty of Business and Economics

Abstract

This paper analyses the impact of a change in Australia's immigration policy, introduced in the mid-1990s, on migrants' probability of becoming entrepreneurs. The policy change consists of stricter entry requirements and restrictions to welfare entitlements. The results indicate that those who entered under more stringent conditions – the second cohort – have a higher probability to become self-employed, than those in the first cohort. We also find significant time and region effects. Contrary to some existing evidence, time spent in Australia positively affects the probability to become self-employed. We discuss the intuitions for the results and their policy implications.

Keywords: immigration policy, entrepreneurship, migration

JEL Classification: C34, J24, J61

Suggested Citation

Mahuteau, Stephane and Piracha, Matloob and Tani, Massimiliano and Vaira-Lucero, Matias, Immigration Policy and Entrepreneurship. IZA Discussion Paper No. 6238, Available at SSRN: https://ssrn.com/abstract=1977824

Stephane Mahuteau (Contact Author)

Macquarie University - Economics Department ( email )

North Ryde
Sydney, New South Wales 2109
Australia
612 9850 8489 (Phone)
612 9850 6069 (Fax)

HOME PAGE: http://www.econ.mq.edu.au/staff/position/staff_by_position/stephane_mahuteau

Matloob Piracha

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy ( email )

Sydney, NSW 2052
Australia
+612 6268 8512 (Phone)
+612 6248 8450 (Fax)

HOME PAGE: http://www.unsw.adfa.edu.au/sbus/staff_cvs/about_max_t.html

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Matias Vaira-Lucero

Macquarie University - Faculty of Business and Economics ( email )

NSW 2109
Australia
+61 (0)2 9850 6474 (Phone)

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