American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Emigration and Entrepreneurial Drain
American Economic Journal: Applied Economics
vol. 15,
no. 2, April 2023
(pp. 218–52)
Abstract
Emigration of young, highly educated individuals may deprive origin countries of entrepreneurs. We identify exogenous variation in emigration from Italy by interacting past diaspora networks and current economic pull factors in destination countries. We find that a 1 standard deviation increase in the emigration rate generates a 4.8 percent decline in firms' creation in the local labor market of origin. An accounting exercise decomposes the estimated effect into four components: subtraction of individuals with average entrepreneurial propensity, selection of young and college-educated among emigrants, negative spillovers on firm creation, and selection on unobservable characteristics positively associated with entrepreneurship.Citation
Anelli, Massimo, Gaetano Basso, Giuseppe Ippedico, and Giovanni Peri. 2023. "Emigration and Entrepreneurial Drain." American Economic Journal: Applied Economics, 15 (2): 218–52. DOI: 10.1257/app.20210194Additional Materials
JEL Classification
- F22 International Migration
- J23 Labor Demand
- J82 Labor Standards: Labor Force Composition
- L26 Entrepreneurship
- M13 New Firms; Startups
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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