Supply of immigrant entrepreneurs and native entrepreneurship

Ghimire, Keshar M.

Supply of immigrant entrepreneurs and native entrepreneurship

IZA Journal of Development and Migration

Volume 12 (2021): Issue 1 (January 2021)

By:

Keshar M. Ghimire

Open Access

|Apr 2021

Figures & Tables

Pre and Post Policy Trends in the Supply of Immigrant Entrepreneurs.Notes: Data span 1994–2016 from the ASEC of the CPS. Trends are for the supply of immigrant entrepreneurs immediately prior to and after the implementation of SCHIP. Only 4 years prior to and after the policy implementation are shown in figure. See text for further details. ASEC, Annual Social and Economic Supplement; CPS, Current Population Survey; SCHIP, State Children's Health Insurance Program.

Pre- and Post-Policy Trends in the Supply of Immigrant Entrepreneurs with Various Attributes.Notes: Data span 1994–2016 from the ASEC of the CPS. Trends are for the supply of immigrant entrepreneurs immediately prior to and after the implementation of SCHIP. Only 4 years prior to and after the policy implementation are shown in figure. See text for further details. ASEC, Annual Social and Economic Supplement; CPS, Current Population Survey; SCHIP, State Children's Health Insurance Program.

Event Study to Test Policy Endogeneity.Notes: Data span 1994–2016 from the ASEC of the CPS. Observations before 5 years of SCHIP are added to “−5” bin and those beyond 5 years post SCHIP are included in the “+5” bin. Then “−5” is dropped as the omitted category. All additional controls included in the baseline regression are retained. Estimates with 95% confidential interval are for the effect of generous SCHIP on the supply of immigrant entrepreneurs. See text for further detail. ASEC, Annual Social and Economic Supplement; CPS, Current Population Survey; SCHIP, State Children's Health Insurance Program.

Heterogeneity in the Impact of Immigrant Entrepreneurs across Skill Levels of Natives: First Stage Estimates for High Skilled

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Generous SCHIP	0.04370^*** (0.00251)	0.02993^*** (0.00130)	0.01377^*** (0.00185)
Age	0.00000 (0.00004)	−0.00001 (0.00002)	0.00001 (0.00003)
Female	0.00047 (0.00082)	−0.00023 (0.00039)	0.00070 (0.00067)
College degree	−0.00021 (0.00088)	−0.00019 (0.00042)	−0.00002 (0.00072)
White	−0.00965^*** (0.00298)	−0.00237^* (0.00128)	−0.00728^*** (0.00247)
Black	−0.01125^*** (0.00336)	−0.00238 (0.00148)	−0.00887^*** (0.00277)
Hispanic	0.00012 (0.00385)	0.00142 (0.00164)	−0.00130 (0.00320)
Number of children	−0.00093^** (0.00036)	−0.00049^*** (0.00017)	−0.00044 (0.00030)
Lives in a city	0.00487^*** (0.00090)	0.00240^*** (0.00045)	0.00247^*** (0.00074)
State population	0.68288^*** (0.00205)	0.18323^*** (0.00087)	0.49965^*** (0.00176)
Observations	203,275	203,275	203,275

Results from Nonlinear Models

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Entrepreneurial propensity of natives:	0.0950	0.0345	0.0606

Probit
Immigrant entrepreneurs	0.0064^*** (0.0019)	0.0068^*** (0.0023)	0.0035^* (0.0019)
Observations	609,365	609,365	609,365

IV probit
Second stage:
Immigrant entrepreneurs	0.0067 (0.0475)	0.0083 (0.0459)	0.0037 (0.1116)
First stage F-stat	2101.30	2697.76	1374.92
Observations	609,365	609,365	609,365

Results using Immigrant Entrepreneurship Rate as the Key Explanatory Variable

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Entrepreneurial propensity of natives	0.0950	0.0345	0.0606

LPM
Immigrant entrepreneurship rate	0.00042^** (0.00020)	0.00027 (0.00027)	0.00018 (0.00019)
Observations	609,365	609,365	609,365

TSLS
Second stage
Immigrant entrepreneurship rate	0.0029 (0.0125)	0.0299 (0.0266)	0.0089 (0.0082)
First stage F-stat	92.93	25.20	174.76
Observations	609,365	609,365	609,365

SCHIP Implementation and Immigrant Coverage by State

State	Date of SCHIP implementation	Coverage for new immigrants
Alaska (AK)	March 1999	Yes
Alabama (AL)	February 1998	No
Arkansas (AR)	October 1998	No
Arizona (AZ)	October 1997	No
California (CA)	July 1998	Yes
Colorado (CO)	April 1998	No
Connecticut (CT)	October 1997	No
District of Columbia (DC)	September 1997	Yes
Delaware (DE)	October 1998	Yes
Florida (FL)	April 1998	No
Georgia (GA)	September 1998	No
Hawaii (HI)	January 2000	Yes
Iowa (IA)	July 1998	No
Idaho (ID)	October 1997	No
Illinois (IL)	January 1998	Yes
Indiana (IN)	October 1997	No
Kansas (KS)	July 1998	No
Kentucky (KY)	July 1998	No
Louisiana (LA)	November 1998	No
Massachusetts (MA)	October 1997	Yes
Maryland (MD)	July 1998	No
Maine (ME)	July 1998	No
Michigan (MI)	May 1998	No
Minnesota (MN)	September 1998	Yes
Missouri (MO)	October 1997	No
Mississippi (MS)	July 1998	No
Montana (MT)	January 1998	No
North Carolina (NC)	October 1998	No
North Dakota (ND)	October 1998	No
Nebraska (NE)	May 1998	Yes
New Hampshire (NH)	May 1998	No
New Jersey (NJ)	February 1998	Yes
New Mexico (NM)	May 1998	Yes
Nevada (NV)	October 1998	No
New York (NY)	April 1998	Yes
Ohio (OH)	January 1998	No
Oklahoma (OK)	December 1997	No
Oregon (OR)	July 1998	No
Pennsylvania (PA)	June 1998	Yes
Rhode Island (RI)	October 1997	No
South Carolina (SC)	October 1997	No
South Dakota (SD)	July 1998	No
Tennessee (TN)	October 1997	No
Texas (TX)	July 1998	No
Utah (UT)	August 1998	No
Virginia (VA)	October 1998	Yes
Vermont (VT)	October 1998	No
Washington (WA)	January 2000	Yes
Wisconsin (WI)	April 1999	No
West Virginia (WV)	July 1998	No
Wyoming (WY)	April 1999	No

Heterogeneity in the Impact of Immigrant Entrepreneurs across Skill Levels of Natives: Second Stage Estimates for High Skilled

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Immigrant entrepreneurs	0.03144 (0.05516)	−0.04661 (0.04708)	0.18127 (0.13897)
Age	0.00412^*** (0.00007)	0.00189^*** (0.00004)	0.00223^*** (0.00005)
Female	−0.04593^*** (0.00138)	−0.04148^*** (0.00093)	−0.00449^*** (0.00109)
College degree	−0.00477^*** (0.00155)	−0.00353^*** (0.00108)	−0.00125 (0.00119)
White	0.01376^*** (0.00394)	0.00908^*** (0.00245)	0.00503 (0.00359)
Black	−0.03556^*** (0.00437)	−0.01289^*** (0.00273)	−0.02224^*** (0.00404)
Hispanic	−0.02256^*** (0.00446)	−0.00520^* (0.00289)	−0.01726^*** (0.00361)
Number of children	0.01358^*** (0.00068)	0.00855^*** (0.00048)	0.00504^*** (0.00052)
Lives in a city	0.00794^*** (0.00244)	−0.00501^*** (0.00159)	0.01288^*** (0.00202)
State population	0.01691 (0.06453)	0.01176 (0.01675)	−0.01816 (0.12021)
Observations	203,275	203,275	203,275

Heterogeneity in the Impact of Immigrant Entrepreneurs across Races of Natives: Second Stage Estimates for Whites

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Immigrant entrepreneurs	−0.04320 (0.10143)	0.02171 (0.07292)	0.51066 (0.56062)
Age	0.00349^*** (0.00004)	0.00157^*** (0.00003)	0.00192^*** (0.00004)
Female	−0.05136^*** (0.00091)	−0.03497^*** (0.00057)	−0.01634^*** (0.00078)
High school	−0.00803^*** (0.00258)	0.01112^*** (0.00126)	−0.01905^*** (0.00239)
Some college	−0.00276 (0.00258)	0.01721^*** (0.00128)	−0.01973^*** (0.00240)
College degree	0.00565^** (0.00263)	0.03003^*** (0.00135)	−0.02478^*** (0.00246)
Advanced degree	0.01165^*** (0.00284)	0.03379^*** (0.00155)	−0.02236^*** (0.00257)
Number of children	0.01590^*** (0.00044)	0.00799^*** (0.00028)	0.00797^*** (0.00038)
Lives in a city	0.02021^*** (0.00136)	−0.00470^*** (0.00076)	0.02409^*** (0.00163)
State population	−0.02639 (0.06614)	0.00969 (0.01300)	−0.24279 (0.26639)
Observations	461,397	461,397	461,397

Effect of SCHIP on Entry of Immigrants into Entrepreneurship

	Entry into entrepreneurship (measured as a proportion)	Entry into entrepreneurship (measured as count)
Sample mean/proportion	0.007	1,324.39
SCHIP	0.0090^*** (0.0001)	0.0156^*** (0.0012)
Observations	609,365	609,365

Heterogeneity in the Impact of Immigrant Entrepreneurs across Skill Levels of Natives: First Stage Estimates for Low Skilled

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Generous SCHIP	0.04620^*** (0.00167)	0.03038^*** (0.00087)	0.01582^*** (0.00124)
Age	−0.00003 (0.00003)	0.00001 (0.00001)	−0.00003 (0.00002)
Female	−0.00007 (0.00056)	0.00021 (0.00027)	−0.00028 (0.00046)
High school	−0.00047 (0.00110)	0.00064 (0.00054)	−0.00111 (0.00091)
Some college	−0.00085 (0.00111)	0.00082 (0.00054)	−0.00167^* (0.00092)
White	−0.00437^*** (0.00165)	−0.00060 (0.00072)	−0.00376^*** (0.00134)
Black	−0.00721^*** (0.00187)	−0.00213^** (0.00084)	−0.00508^*** (0.00152)
Hispanic	−0.00117 (0.00203)	0.00056 (0.00088)	−0.00173 (0.00165)
Number of children	−0.00000 (0.00025)	0.00012 (0.00012)	−0.00012 (0.00021)
Lives in a city	0.00375^*** (0.00054)	0.00168^*** (0.00028)	0.00207^*** (0.00045)
State population	0.65169^*** (0.00139)	0.17641^*** (0.00060)	0.47528^*** (0.00117)
Observations	406,090	406,090	406,090

Impact of Supply of Immigrant Entrepreneurs on Entrepreneurial Propensities of Natives: LPM

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Entrepreneurial propensity of natives:	0.0950	0.0345	0.0606
Immigrant entrepreneurs	0.0035^** (0.0014)	0.0064^*** (0.0017)	0.0025^* (0.0014)
Age	0.00310^*** (0.00003)	0.00139^*** (0.00002)	0.00171^*** (0.00002)
Female	−0.04504^*** (0.00055)	−0.02901^*** (0.00034)	−0.01603^*** (0.00045)
High school	−0.00688^*** (0.00135)	0.00903^*** (0.00064)	−0.01591^*** (0.00122)
Some college	−0.00141 (0.00135)	0.01478^*** (0.00065)	−0.01619^*** (0.00122)
College degree	0.00642^*** (0.00141)	0.02653^*** (0.00072)	−0.02011^*** (0.00125)
Advanced degree	0.01341^*** (0.00156)	0.03144^*** (0.00087)	−0.01804^*** (0.00135)
White	0.02559^*** (0.00148)	0.01142^*** (0.00085)	0.01416^*** (0.00126)
Black	−0.02389^*** (0.00159)	−0.01070^*** (0.00091)	−0.01320^*** (0.00135)
Hispanic	−0.01709^*** (0.00161)	−0.00484^*** (0.00091)	−0.01226^*** (0.00137)
Number of children	0.01181^*** (0.00026)	0.00626^*** (0.00016)	0.00555^*** (0.00021)
Lives in a city	0.01484^*** (0.00085)	−0.00430^*** (0.00048)	0.01914^*** (0.00072)
State population	0.00027 (0.00087)	0.00080^** (0.00037)	−0.00043 (0.00071)
Observations	1,111,863	1,111,863	1,111,863

First-stage regressions: impact of generous SCHIP on supply of immigrant entrepreneurs

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Average supply of immigrant entrepreneurs:	144,200	41,800	102,400
Generous SCHIP	0.1160^*** (0.0025)	0.0493^*** (0.0009)	0.0668^*** (0.0018)
First stage F-stat	2,101.30	2,697.76	1,374.92
Observations	609,365	609,365	609,365

Heterogeneity in the Impact of Immigrant Entrepreneurs across Races of Natives: First Stage Estimates for Blacks

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Generous SCHIP	0.09265^*** (0.00440)	0.02986^*** (0.00238)	0.06280^*** (0.00327)
Age	0.00001 (0.00007)	0.00004 (0.00003)	−0.00004 (0.00006)
Female	0.00017 (0.00142)	0.00013 (0.00071)	0.00005 (0.00116)
High school	−0.00049 (0.00242)	0.00229^* (0.00133)	−0.00278 (0.00201)
Some college	−0.00507^** (0.00252)	0.00230^* (0.00137)	−0.00737^*** (0.00210)
College degree	0.00107 (0.00287)	0.00467^*** (0.00152)	−0.00360 (0.00238)
Advanced degree	0.00084 (0.00344)	0.00235 (0.00180)	−0.00151 (0.00283)
Number of children	0.00112^* (0.00062)	0.00009 (0.00031)	0.00103^** (0.00051)
Lives in a city	0.00309 (0.00213)	0.00175 (0.00121)	0.00134 (0.00174)
State population	0.61485^*** (0.00343)	0.16403^*** (0.00149)	0.45081^*** (0.00284)
Observations	64,163	64,163	64,163

Heterogeneity in the Impact of Immigrant Entrepreneurs across Races of Natives: Second Stage Estimates for Blacks

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Immigrant entrepreneurs	0.09242^* (0.05191)	0.02171 (0.08435)	0.12605^* (0.06622)
Age	0.00142^*** (0.00008)	0.00038^*** (0.00004)	0.00105^*** (0.00007)
Female	−0.02960^*** (0.00177)	−0.01345^*** (0.00098)	−0.01614^*** (0.00150)
High school	−0.00514 (0.00342)	0.00246^* (0.00132)	−0.00735^** (0.00320)
Some college	−0.00147 (0.00351)	0.00613^*** (0.00139)	−0.00719^** (0.00327)
College	0.00754^* (0.00391)	0.01698^*** (0.00191)	−0.00899^*** (0.00348)
Advanced degree	0.01911^*** (0.00493)	0.02570^*** (0.00285)	−0.00637 (0.00413)
Number of children	0.00388^*** (0.00074)	0.00233^*** (0.00042)	0.00152^** (0.00063)
Lives in a city	−0.00109 (0.00353)	−0.00188 (0.00159)	0.00087 (0.00318)
State population	−0.05595^* (0.03182)	−0.00293 (0.01364)	−0.05658^* (0.02985)
Observations	64,163	64,163	64,163

Impact of immigrant entrepreneurs on entrepreneurial propensities of natives: LPM

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Entrepreneurial propensity of natives:	0.0950	0.0345	0.0606
Immigrant entrepreneurs	0.0035^** (0.0014)	0.0064^*** (0.0017)	0.0025^* (0.0014)
Observations	1,111,863	1,111,863	1,111,863

Sensitivity to modeling and sampling choices: TSLS estimates

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Entrepreneurial propensity of natives:	0.0950	0.0345	0.0606

State specific linear trends
Immigrant entrepreneurs	0.0080 (0.0161)	0.0875 (0.0993)	−0.0005 (0.0150)
Observations	609,352	609,352	609,352

Weighted least squares
Immigrant entrepreneurs	0.0130 (0.0667)	−0.0320 (0.0407)	1.2307 (1.9806)
Observations	609,365	609,365	609,365

Clustered standard errors
Immigrant entrepreneurs	0.0109 (0.0611)	–0.0491 (0.1231)	0.1268 (0.3590)
Observations	609,365	609,365	609,365

Logged explanatory variable
Immigrant entrepreneurs	−0.0057 (0.1044)	0.0128 (0.0098)	−0.0588 (0.0634)
Observations	605,156	605,156	605,156

Extended sample
Immigrant entrepreneurs	−0.0014 (0.0984)	−0.0537 (0.0479)	−0.2859 (0.3718)
Observations	806,462	806,462	806,462

Heterogeneity in the Impact of Immigrant Entrepreneurs across Skill Levels of Natives: Second Stage Estimates for Low Skilled

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Immigrant entrepreneurs	0.03144 (0.05516)	−0.04661 (0.04708)	0.18127 (0.13897)
Age	0.00264^*** (0.00004)	0.00102^*** (0.00002)	0.00162^*** (0.00004)
Female	−0.04654^*** (0.00090)	−0.02342^*** (0.00052)	−0.02307^*** (0.00077)
High school	−0.00584^*** (0.00178)	0.00813^*** (0.00083)	−0.01376^*** (0.00163)
Some college	−0.00080 (0.00179)	0.01370^*** (0.00086)	−0.01419^*** (0.00164)
White	0.03208^*** (0.00253)	0.01239^*** (0.00129)	0.02021^*** (0.00230)
Black	−0.02104^*** (0.00272)	−0.01112^*** (0.00137)	−0.00932^*** (0.00250)
Hispanic	−0.01388^*** (0.00270)	−0.00498^*** (0.00136)	−0.00859^*** (0.00242)
Number of children	0.01184^*** (0.00042)	0.00497^*** (0.00024)	0.00690^*** (0.00036)
Lives in a city	0.02034^*** (0.00132)	−0.00425^*** (0.00070)	0.02441^*** (0.00119)
State population	−0.01453 (0.03602)	0.00996 (0.00842)	−0.08193 (0.06607)
Observations	406,090	406,090	406,090

First-stage Regressions: Association between Generous SCHIP and Supply of Immigrant Entrepreneurs

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Average supply of immigrant entrepreneurs:	144,200	41,800	102,400
Generous SCHIP	0.1160^*** (0.0025)	0.0493^*** (0.0009)	0.0668^*** (0.0018)
Age	−0.00002 (0.00002)	0.00000 (0.00001)	−0.00002 (0.00002)
Female	0.00024 (0.00046)	0.00011 (0.00022)	0.00013 (0.00038)
High school	−0.00079 (0.00110)	0.00056 (0.00053)	−0.00136 (0.00091)
Some college	−0.00158 (0.00111)	0.00069 (0.00054)	−0.00227^** (0.00092)
College degree	0.00114 (0.00115)	0.00131^** (0.00056)	−0.00017 (0.00095)
Advanced degree	0.00139 (0.00125)	0.00140^** (0.00061)	−0.00001 (0.00104)
White	−0.00704^*** (0.00149)	−0.00147^** (0.00064)	−0.00557^*** (0.00122)
Black	−0.00916^*** (0.00166)	−0.00249^*** (0.00074)	−0.00667^*** (0.00136)
Hispanic	−0.00353^* (0.00182)	0.00009 (0.00079)	−0.00362^** (0.00150)
Number of children	−0.00030 (0.00021)	−0.00007 (0.00010)	−0.00023 (0.00017)
Lives in a city	0.00456^*** (0.00046)	0.00206^*** (0.00024)	0.00250^*** (0.00038)
State population	0.66179^*** (0.00115)	0.17862^*** (0.00049)	0.48317^*** (0.00097)

Observations	609,365	609,365	609,365

Summary statistics: incorporated vs_ unincorporated

Sample	Natives		Immigrants

	Incorp.	Unincorp.	Incorp.	Unincorp.
Age	46.33	44.91	45.39	43.73
Female	0.278	0.402	0.285	0.358
Less than high school	0.0265	0.0633	0.0787	0.243
High school	0.229	0.301	0.247	0.303
Some college	0.274	0.301	0.179	0.175
College degree	0.290	0.210	0.285	0.182
Advanced degree	0.181	0.125	0.210	0.0978
White	0.902	0.854	0.374	0.253
Black	0.0402	0.0614	0.0560	0.0591
Hispanic	0.0358	0.0567	0.238	0.450
Number of family members under 18	0.851	0.803	1.021	1.028
Lives in a metropolitan city	0.853	0.772	0.962	0.943
Observations	39,007	67,829	7,846	16,518

Impact of Supply of Immigrant Entrepreneurs on Entrepreneurial Propensities of Natives: Second Stage Estimates

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Entrepreneurial propensity of natives:	0.0950	0.0345	0.0606
Immigrant entrepreneurs	0.0109 (0.0470)	−0.0491 (0.0426)	0.1268 (0.1161)
Age	0.00311^*** (0.00004)	0.00134^*** (0.00002)	0.00178^*** (0.00003)
Female	−0.04720^*** (0.00075)	−0.03003^*** (0.00046)	−0.01718^*** (0.00062)
High school	−0.00528^*** (0.00177)	0.00888^*** (0.00083)	−0.01397^*** (0.00163)
Some college	−0.00005 (0.00178)	0.01482^*** (0.00085)	−0.01457^*** (0.00164)
College degree	0.00885^*** (0.00186)	0.02726^*** (0.00096)	−0.01832^*** (0.00166)
Advanced degree	0.01802^*** (0.00211)	0.03320^*** (0.00118)	−0.01510^*** (0.00183)
White	0.02627^*** (0.00213)	0.01184^*** (0.00118)	0.01499^*** (0.00193)
Black	−0.02582^*** (0.00230)	−0.01105^*** (0.00126)	−0.01415^*** (0.00210)
Hispanic	−0.01754^*** (0.00229)	−0.00482^*** (0.00126)	−0.01230^*** (0.00203)
Number of children	0.01279^*** (0.00035)	0.00661^*** (0.00022)	0.00620^*** (0.00029)
Lives in a city	0.01795^*** (0.00117)	−0.00446^*** (0.00065)	0.02224^*** (0.00103)
State population	−0.00482 (0.03122)	0.01032 (0.00772)	−0.06039 (0.05612)
Observations	609,365	609,365	609,365

Impact of immigrant entrepreneurs on entrepreneurial propensities of natives: TSLS Model

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Entrepreneurial propensity of natives	0.0950	0.0345	0.0606
Immigrant entrepreneurs	0.0109 (0.0470)	−0.0491 (0.0426)	0.1268 (0.1161)
Observations	609,365	609,365	609,365

Heterogeneity in the Impact of Immigrant Entrepreneurs across Races of Natives: First Stage Estimates for Whites

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Generous SCHIP	0.02622^*** (0.00156)	0.02212^*** (0.00082)	0.00410^*** (0.00117)
Age	−0.00001 (0.00002)	−0.00000 (0.00001)	−0.00000 (0.00002)
Female	−0.00009 (0.00049)	0.00002 (0.00024)	−0.00010 (0.00040)
High school	0.00018 (0.00123)	0.00033 (0.00063)	−0.00015 (0.00102)
Some college	−0.00002 (0.00124)	0.00042 (0.00063)	−0.00044 (0.00104)
College degree	0.00166 (0.00127)	0.00066 (0.00065)	0.00100 (0.00106)
Advanced degree	0.00149 (0.00138)	0.00086 (0.00070)	0.00063 (0.00115)
Number of children	−0.00028 (0.00022)	−0.00014 (0.00011)	−0.00015 (0.00018)
Lives in a city	0.00393^*** (0.00049)	0.00184^*** (0.00025)	0.00209^***s (0.00040)
State population	0.65092^*** (0.00144)	0.17584^*** (0.00062)	0.47509^*** (0.00122)
Observations	461,397	461,397	461,397

Heterogeneity in the Impact of Immigrant Entrepreneurs across Natives by Parents’ Origin: TSLS Estimates

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
At least one foreign born parent
Entrepreneurial propensity of natives:	0.0935	0.0357	0.0578
Immigrant entrepreneurs	−0.1659 (0.1109)	−0.1791 (0.1286)	−0.1510 (0.1945)
First stage F stat	139.94	144.049	369.79
Observations	64,475	64,475	64,475

No foreign born parents
Entrepreneurial propensity of natives:	0.0997	0.0350	0.0647
Immigrant entrepreneurs	0.0369 (0.0514)	−0.0349 (0.0454)	0.1834 (0.1321)
First stage F stat	984.07	1622.47	194.04
Observations	544,890	544,890	544,890

Summary statistics

Sample	All	Natives	Immigrants
Outcome variables
Self-employed	0.0961	0.0950	0.101
Incorporated self-employed	0.0342	0.0345	0.0330
Unincorporated self-employed	0.0619	0.0606	0.0684

Control variables
Age	41.28	41.41	40.66
Female	0.471	0.481	0.422
Less than high school	0.0815	0.0494	0.239
High school	0.295	0.300	0.271
Some college	0.285	0.306	0.179
College degree	0.224	0.231	0.192
Advanced degree	0.114	0.113	0.119
White	0.677	0.776	0.197
Black	0.108	0.113	0.0838
Other race	0.214	0.111	0.719
Hispanic	0.147	0.0817	0.468
Number of family members under 18	0.807	0.765	1.011
Lives in a metropolitan	0.852	0.832	0.947
State population (millions)	7.661	7.124	1.029
Observations	1,361,196	1,111,850	249,346

Heterogeneity in the impact of immigrant entrepreneurs across races of natives: TSLS estimates

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Blacks
Entrepreneurial propensity of natives:	0.0469	0.0126	0.0343
Immigrant entrepreneurs	0.0924^* (0.0519)	0.0217 (0.0843)	0.1260^* (0.0662)
First stage F stat	442.68	157.00	369.79
Observations	64,163	64,163	64,163

Whites
Entrepreneurial propensity of natives:	0.1121	0.0414	0.0706
Immigrant entrepreneurs	0.0434 (0.1014)	−0.0432 (0.0729)	0.5106 (0.5606)
First stage F stat	280.89	731.16	12.25
Observations	461,397	461,397	461,397

Results with Separate Controls for Immigrant and Native Population

Outcome	Any self-employment	Incorporated self-employment	Unincorporated self-employment
Immigrant entrepreneurs	0.01247 (0.0258)	0.5644 (0.3684)	−0.0130 (0.0225)
First stage F-stat	7,012.38	72.25	8,873.64
Observations	609,365	609,365	609,365

DOI: https://doi.org/10.2478/izajodm-2021-0004 | Journal eISSN: 2520-1786

Journal RSS Feed

Language: English

Accepted on: Feb 10, 2021

Published on: Apr 29, 2021

Published by: Sciendo

In partnership with: Paradigm Publishing Services

Publication frequency: 1 times per year

Keywords:

entrepreneurship,

immigration,

self-employment,

incorporated and unincorporated businesses,

State Children's Health Insurance Program

Related subjects:

Business and economics,

Mathematics and statistics for economists,

Econometrics

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Supply of immigrant entrepreneurs and native entrepreneurship

Figures & Tables

Figure 1

Figure 2

Figure 3

Heterogeneity in the Impact of Immigrant Entrepreneurs across Skill Levels of Natives: First Stage Estimates for High Skilled

Results from Nonlinear Models

Results using Immigrant Entrepreneurship Rate as the Key Explanatory Variable

SCHIP Implementation and Immigrant Coverage by State

Heterogeneity in the Impact of Immigrant Entrepreneurs across Skill Levels of Natives: Second Stage Estimates for High Skilled

Heterogeneity in the Impact of Immigrant Entrepreneurs across Races of Natives: Second Stage Estimates for Whites

Effect of SCHIP on Entry of Immigrants into Entrepreneurship

Heterogeneity in the Impact of Immigrant Entrepreneurs across Skill Levels of Natives: First Stage Estimates for Low Skilled

Impact of Supply of Immigrant Entrepreneurs on Entrepreneurial Propensities of Natives: LPM

First-stage regressions: impact of generous SCHIP on supply of immigrant entrepreneurs

Heterogeneity in the Impact of Immigrant Entrepreneurs across Races of Natives: First Stage Estimates for Blacks

Heterogeneity in the Impact of Immigrant Entrepreneurs across Races of Natives: Second Stage Estimates for Blacks

Impact of immigrant entrepreneurs on entrepreneurial propensities of natives: LPM

Sensitivity to modeling and sampling choices: TSLS estimates

Heterogeneity in the Impact of Immigrant Entrepreneurs across Skill Levels of Natives: Second Stage Estimates for Low Skilled

First-stage Regressions: Association between Generous SCHIP and Supply of Immigrant Entrepreneurs

Summary statistics: incorporated vs_ unincorporated

Impact of Supply of Immigrant Entrepreneurs on Entrepreneurial Propensities of Natives: Second Stage Estimates

Impact of immigrant entrepreneurs on entrepreneurial propensities of natives: TSLS Model

Heterogeneity in the Impact of Immigrant Entrepreneurs across Races of Natives: First Stage Estimates for Whites

Heterogeneity in the Impact of Immigrant Entrepreneurs across Natives by Parents’ Origin: TSLS Estimates

Summary statistics

Heterogeneity in the impact of immigrant entrepreneurs across races of natives: TSLS estimates

Results with Separate Controls for Immigrant and Native Population

Paradigm

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