Entrepreneurial Migration

71 Pages Posted: 11 Oct 2021 Last revised: 15 May 2023

See all articles by Kevin Bryan

Kevin Bryan

University of Toronto - Strategic Management

Jorge Guzman

Columbia University - Columbia Business School; NBER

Date Written: August 30, 2021

Abstract

We track the movement of high-potential startups using cross-state business registrations and estimate the utility of cities to moving startups using a revealed preference approach. 6.6\% of these startups move across state borders during their first five years. Startup hubs like Silicon Valley and Boston tend to lose startups to other cities. Our findings show that startups prefer traditional hubs when they move soon after being founded, but later prefer cities with lower taxes. This pattern is not due to vertical sorting or industrial specialization. \\

Keywords: entrepreneurship, migration, location, startup cartography

JEL Classification: L26

Suggested Citation

Bryan, Kevin and Guzman, Jorge, Entrepreneurial Migration (August 30, 2021). Available at SSRN: https://ssrn.com/abstract=3914010 or http://dx.doi.org/10.2139/ssrn.3914010

Kevin Bryan

University of Toronto - Strategic Management ( email )

Canada

Jorge Guzman (Contact Author)

Columbia University - Columbia Business School ( email )

3022 Broadway
New York, NY 10027
United States

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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