The Impact of High Skilled Immigration on Regional Entrepreneurship

47 Pages Posted: 6 Apr 2022 Last revised: 6 May 2022

See all articles by Jorge Guzman

Jorge Guzman

Columbia University - Columbia Business School; NBER

Inara Tareque

Columbia Business School

Dan Wang

Columbia University - Columbia Business School, Management

Date Written: March 21, 2022

Abstract

The arrival of high skilled immigrants through new H-1B visas increases regional entrepreneurship. A doubling of immigrants is associated with an increase of 6% in the three-year quality-adjusted entrepreneurship at the city (CBSA) level, and 5.8% at the neighborhood (ZIP Code) level. In contrast, continuing H-1Bs and the arrival of unskilled immigrants (H-2Bs) do not increase regional entrepreneurship. The effect of immigrants is concentrated in increasing the quality, rather than the quantity, of startups. Heterogeneity analyses suggest the effect is sensitive to the concentration of ethnic enclaves, but not to the overall income or education of the receiving region.

Keywords: immigration, H-1B, entrepreneurship, regions

JEL Classification: L26, J61, R10

Suggested Citation

Guzman, Jorge and Tareque, Inara and Wang, Dan, The Impact of High Skilled Immigration on Regional Entrepreneurship (March 21, 2022). Available at SSRN: https://ssrn.com/abstract=4063282 or http://dx.doi.org/10.2139/ssrn.4063282

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

Inara Tareque

Columbia Business School ( email )

New York, NY 10027

HOME PAGE: http://https://www.gsb.stanford.edu/contact/inara-s-tareque

Dan Wang

Columbia University - Columbia Business School, Management ( email )

3022 Broadway
New York, NY 10027
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
199
Abstract Views
564
rank
210,481
PlumX Metrics