Articles producció científicaEconomia

Immigrants and entrepreneurship: A road for talent or just the only road?

  • Identification data

    Identifier:  imarina:9452167
    Authors:  Iranzo, Susana
    Abstract:
    The available evidence suggests that migrant entrepreneurs contribute to a country's growth and innovation, but entrepreneurship might also be chosen by less talented migrants who have limited chances in the labor market. This paper develops a theoretical framework that features specific constraints migrants face to better understand the mechanisms at play in their occupational choices. I test the model predictions using data for Spain right after the migration boom occurred from the mid-1990s to the mid-2000s. I find that human capital losses upon arrival are largely responsible for the low propensities to self-employment of the three largest migrant groups (Romanians, Moroccans and Ecuadorians) observed in the data. Also, I find no evidence of negative sorting into self-employment. Yet, the relatively large self-employment rate of Moroccans, once human capital is properly accounted for, and their low entrepreneurial quality is consistent with this group of migrants being subject to penalties in the labor market associated to information problems that push them into self-employment.
  • Others:

    Link to the original source: https://www.sciencedirect.com/science/article/pii/S0166046225000109?via%3Dihub
    APA: Iranzo, Susana (2025). Immigrants and entrepreneurship: A road for talent or just the only road?. Regional Science And Urban Economics, 112(), 104093-. DOI: 10.1016/j.regsciurbeco.2025.104093
    Paper original source: Regional Science And Urban Economics. 112 104093-
    Article's DOI: 10.1016/j.regsciurbeco.2025.104093
    Journal publication year: 2025
    Entity: Universitat Rovira i Virgili
    Paper version: info:eu-repo/semantics/publishedVersion
    Record's date: 2025-04-30
    URV's Author/s: Iranzo Sancho, Susana
    Department: Economia
    Licence document URL: https://repositori.urv.cat/ca/proteccio-de-dades/
    Publication Type: Journal Publications
    Author, as appears in the article.: Iranzo, Susana
    licence for use: https://creativecommons.org/licenses/by/3.0/es/
    Thematic Areas: Business and management, Ciencias sociales, Economia, Economics, Economics and econometrics, Environmental studies, Geografía, Geografia i urbanisme, Human geography and urban studies, Urban studies
    Author's mail: susana.iranzo@urv.cat
  • Keywords:

    Earnings
    England
    Entrepreneurial quality
    Human capital losses
    Information problems
    Labor-market assimilation
    Liquidity constraints
    Migrant entrepreneurship
    Negative sorting
    Networks
    Propensity to self-employment
    Self-employment
    Spai
    Spain
    Wealt
    Economics
    Economics and Econometrics
    Environmental Studies
    Urban Studies
    Business and management
    Ciencias sociales
    Economia
    Geografía
    Geografia i urbanisme
    Human geography and urban studies
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