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Immigrants and entrepreneurship: A road for talent or just the only road? - imarina:9452167

URV's Author/s:Iranzo Sancho, Susana
Author, as appears in the article.:Iranzo, Susana
Author's mail:susana.iranzo@urv.cat
Journal publication year:2025
Publication Type:Journal Publications
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-
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.
Article's DOI:10.1016/j.regsciurbeco.2025.104093
Link to the original source:https://www.sciencedirect.com/science/article/pii/S0166046225000109?via%3Dihub
Paper version:info:eu-repo/semantics/publishedVersion
licence for use:https://creativecommons.org/licenses/by/3.0/es/
Department:Economia
Licence document URL:https://repositori.urv.cat/ca/proteccio-de-dades/
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
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
Entity:Universitat Rovira i Virgili
Record's date:2025-04-30
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