Posted: 16 Feb 2017 Last revised: 19 Jan 2018
Date Written: February 13, 2017
I use business registration data to study the migration of high-growth startups across regions. Startup migration is meaningful and entrepreneurial. Migrants are higher quality than startups in their source region, but not in the destination. Interpreting migration as a revealed preference for regions, I use time-series variation in a panel of MSAs to estimate the elasticity of migrant utility (profit) to different regional characteristics. Bohemia, patenting, housing costs, MSA GDP, the supply of venture capital, and the number and quality-adjusted quantity of new firms, all predict migration in cross-section, but only venture capital and the quality-adjusted quantity do after MSA fixed-effects.
Keywords: entrepreneurship, entrepreneurial migration, regional entrepreneurship
JEL Classification: L26, P25
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