Immigration and Entrepreneurship: The Role of Enclaves

71 Pages Posted: 24 Mar 2020 Last revised: 10 Sep 2020

Date Written: July 1, 2019

Abstract

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.

Keywords: immigration,entrepreneurship

JEL Classification: L26,J61

Suggested Citation

Marinoni, Astrid, Immigration and Entrepreneurship: The Role of Enclaves (July 1, 2019). Available at SSRN: https://ssrn.com/abstract=3540395 or http://dx.doi.org/10.2139/ssrn.3540395

Astrid Marinoni (Contact Author)

University of Toronto ( email )

Canada

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