Partisan Entrepreneurship

82 Pages Posted: 7 Apr 2021 Last revised: 15 Jul 2023

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; NBER

Runjing Lu

University of Alberta, Alberta School of Business

William Mullins

University of California, San Diego (UCSD)

Multiple version iconThere are 2 versions of this paper

Date Written: July 3, 2023

Abstract

Republicans start more firms than Democrats. In a sample of 40 million party-identified Americans between 2005 and 2017, we find that 5.5% of Republicans and 3.7% 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 170,000 new firms over our 13-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: L26, G41, G51, M13

Suggested Citation

Engelberg, Joseph and Guzman, Jorge and Lu, Runjing and Mullins, William, Partisan Entrepreneurship (July 3, 2023). 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

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Runjing Lu

University of Alberta, Alberta School of Business ( email )

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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