Immigration and Entrepreneurship: The Role of Enclaves
62 Pages Posted: 24 Mar 2020 Last revised: 26 Mar 2021
Date Written: July 1, 2019
Immigration is a major force driving entrepreneurial dynamics that affect economic growth. In investigating the impact of immigration on entrepreneurship, this study focuses on how the presence of enclaves alters this relationship. I examine the impact of Polish immigration to Great Britain by exploiting the unprecedented migration wave caused by the European Union enlargement and by using a novel dataset on incorporations. The results indicate that immigration increases immigrant entrepreneurship, but this does not hold in existing immigrant enclaves. I also find that the blocked labor market in non-enclave areas encourages the birth of lower-quality, necessity-based firms.
JEL Classification: L26,J61
Suggested Citation: Suggested Citation