Entrepreneurial Migration

75 Pages Posted: 11 Oct 2021

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


We use cross-state business registrations to track the geographic movement of startups with high growth potential. In their first five years, 6.6% percent of these startups move across state borders. Though startup births are concentrated geographically, hubs like Silicon Valley and Boston on net lose startups to entrepreneurial migration. A revealed preference approach nonparametrically identifies the average utility of cities to migrant founders. University towns and startup hubs have low relative utility. This pattern is due neither to vertical sorting nor industrial specialization. The higher-quality startups move to lower-tax, business-friendly cities, while less growth-oriented startups move to low-tax, high-amenity cities.

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 )


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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