49 Pages Posted: 7 Apr 2021 Last revised: 13 Apr 2021
Date Written: April 5, 2021
Republicans start more firms than Democrats. Using a sample of 27 million party-identified Americans between 1997 and 2017, we find that 9% of Republicans and 6% 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, with sharp changes around the elections of President Obama and President Trump. The strongest effects exist among the most politically active partisans: those that donate and vote.
Keywords: Entrepreneurship, Politics, Partisanship
JEL Classification: G12, G14
Suggested Citation: Suggested Citation