The 17 reference contexts in paper Christopher F. Baum, Linda Dastory, Hans Lööf, Andreas Stephan (2018) “Migrant STEM Entrepreneurs” / RePEc:boc:bocoec:965

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    Keywords: STEM, migration, entrepreneurship, income, panel data JEL Codes: F22, L26, J44, J61, O14 ∗Corresponding author: hans.loof@indek.kth.se 1 Introduction Self-employed migrant entrepreneurs and migrant scientists and engineers have both received considerable attention in the literature, which is often case-study oriented and includes
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    Lofstrom, Bates & Parker (2014),
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    Fairlie et al. (2012), Green, Liu, Ostrovsky & Picot (2016), Akee, Jaeger & Tatsiramos (2013), Saxenian (2002). A much smaller literature takes a different approach and exploits surveys or representative samples to quantify the broader contribution of highly skilled migrant entrepreneurs to job creation, technological progress and productivity growth: see for instance Kerr (2013), Kerr & K
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    Keywords: STEM, migration, entrepreneurship, income, panel data JEL Codes: F22, L26, J44, J61, O14 ∗Corresponding author: hans.loof@indek.kth.se 1 Introduction Self-employed migrant entrepreneurs and migrant scientists and engineers have both received considerable attention in the literature, which is often case-study oriented and includes Lofstrom, Bates & Parker (2014), Fairlie et al. (2012),
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    Green, Liu, Ostrovsky & Picot (2016), Akee, Jaeger & Tatsiramos (2013), Saxenian (2002).
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    A much smaller literature takes a different approach and exploits surveys or representative samples to quantify the broader contribution of highly skilled migrant entrepreneurs to job creation, technological progress and productivity growth: see for instance Kerr (2013), Kerr & Kerr (2018), Beckers & Blumberg (2013), Brown, Earle, Kim & Lee (2018).
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    A much smaller literature takes a different approach and exploits surveys or representative samples to quantify the broader contribution of highly skilled migrant entrepreneurs to job creation, technological progress and productivity growth: see for instance
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    Kerr (2013), Kerr & Kerr (2018), Beckers & Blumberg (2013), Brown, Earle, Kim & Lee (2018).
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    Our paper belongs to the latter category of studies on migrant entrepreneurs. The objective of our paper is to explore and explain firm formation by migrants with a STEM background, defined as university education in physics and chemistry, mathematics and statistics, biology, engineering and IT, or a professional background as a technician or IT operator.
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    This research mainly focuses on how native-born workers are affected in terms of jobs and wages. One of referred example is the influx of Mariel boatlift migrants from Cuba in the 1980s, analyzed as a supply shock to the Miami labor market: e.g.,
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    (Card 1990, Borjas 2017).
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    More recently, there is a growing stream of studies considering whether skilled migrants can mitigate the problem faced by many OECD countries experiencing a shortage of skilled workers in science and engineering.
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    Only a small fraction of this literature links skilled migrants to entrepreneurship, and these studies almost all focus on migrant entrepreneurs in the U.S. high–tech sector. High-tech entrepreneurs linked to the STEM profession are assumed to have a key role in the creation and adoption of scientific and technological innovation
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    (Peri & Sparber 2009).
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    The theoretical underpinning for this assumption can be found in literature on competitiveness, productivity and growth that links entrepreneurship to factors such as innovation (Grossman & Helpman 1990, Romer 1990), opportunity (Shane & Venkataraman 2000) and risk (Sarasvathy, Simon, Lave et al. 1998). 4 There are arguments favoring the hypothesis that migrant entrepreneurs may have advantages
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    High-tech entrepreneurs linked to the STEM profession are assumed to have a key role in the creation and adoption of scientific and technological innovation (Peri & Sparber 2009). The theoretical underpinning for this assumption can be found in literature on competitiveness, productivity and growth that links entrepreneurship to factors such as innovation
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    (Grossman & Helpman 1990, Romer 1990),
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    opportunity (Shane & Venkataraman 2000) and risk (Sarasvathy, Simon, Lave et al. 1998). 4 There are arguments favoring the hypothesis that migrant entrepreneurs may have advantages compare to native-born counterparts, such as recognizing different opportunities (Florida 2006), being more likely to export or engage in international operations (Wang & Liu 2015), representing a self-selected group d
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    The theoretical underpinning for this assumption can be found in literature on competitiveness, productivity and growth that links entrepreneurship to factors such as innovation (Grossman & Helpman 1990, Romer 1990), opportunity
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    (Shane & Venkataraman 2000) and
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    risk (Sarasvathy, Simon, Lave et al. 1998). 4 There are arguments favoring the hypothesis that migrant entrepreneurs may have advantages compare to native-born counterparts, such as recognizing different opportunities (Florida 2006), being more likely to export or engage in international operations (Wang & Liu 2015), representing a self-selected group due to personality traits (Akee et al. 2013,
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    , productivity and growth that links entrepreneurship to factors such as innovation (Grossman & Helpman 1990, Romer 1990), opportunity (Shane & Venkataraman 2000) and risk (Sarasvathy, Simon, Lave et al. 1998). 4 There are arguments favoring the hypothesis that migrant entrepreneurs may have advantages compare to native-born counterparts, such as recognizing different opportunities
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    (Florida 2006),
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    being more likely to export or engage in international operations (Wang & Liu 2015), representing a self-selected group due to personality traits (Akee et al. 2013, Hunt & Gauthier-Loiselle 2010, Kerr & Lincoln 2010), or having group-level advantages from joint selection into entrepreneurship for migrants from a country or ethnicity (Kerr & Mandorff 2015).
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    as innovation (Grossman & Helpman 1990, Romer 1990), opportunity (Shane & Venkataraman 2000) and risk (Sarasvathy, Simon, Lave et al. 1998). 4 There are arguments favoring the hypothesis that migrant entrepreneurs may have advantages compare to native-born counterparts, such as recognizing different opportunities (Florida 2006), being more likely to export or engage in international operations
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    (Wang & Liu 2015),
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    representing a self-selected group due to personality traits (Akee et al. 2013, Hunt & Gauthier-Loiselle 2010, Kerr & Lincoln 2010), or having group-level advantages from joint selection into entrepreneurship for migrants from a country or ethnicity (Kerr & Mandorff 2015).
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    2000) and risk (Sarasvathy, Simon, Lave et al. 1998). 4 There are arguments favoring the hypothesis that migrant entrepreneurs may have advantages compare to native-born counterparts, such as recognizing different opportunities (Florida 2006), being more likely to export or engage in international operations (Wang & Liu 2015), representing a self-selected group due to personality traits
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    (Akee et al. 2013, Hunt & Gauthier-Loiselle 2010, Kerr & Lincoln 2010),
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    or having group-level advantages from joint selection into entrepreneurship for migrants from a country or ethnicity (Kerr & Mandorff 2015). In contrast, there are also counter-arguments emphasizing issues such as cultural differences and language barriers (Borjas, Grogger & Hanson 2008), being less embedded in networks and social institutions which facilitates recruitment and informal transfer of
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    , such as recognizing different opportunities (Florida 2006), being more likely to export or engage in international operations (Wang & Liu 2015), representing a self-selected group due to personality traits (Akee et al. 2013, Hunt & Gauthier-Loiselle 2010, Kerr & Lincoln 2010), or having group-level advantages from joint selection into entrepreneurship for migrants from a country or ethnicity
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    (Kerr & Mandorff 2015).
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    In contrast, there are also counter-arguments emphasizing issues such as cultural differences and language barriers (Borjas, Grogger & Hanson 2008), being less embedded in networks and social institutions which facilitates recruitment and informal transfer of knowledge and access to financial capital (Fairlie et al. 2012).
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    2015), representing a self-selected group due to personality traits (Akee et al. 2013, Hunt & Gauthier-Loiselle 2010, Kerr & Lincoln 2010), or having group-level advantages from joint selection into entrepreneurship for migrants from a country or ethnicity (Kerr & Mandorff 2015). In contrast, there are also counter-arguments emphasizing issues such as cultural differences and language barriers
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    (Borjas, Grogger & Hanson 2008),
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    being less embedded in networks and social institutions which facilitates recruitment and informal transfer of knowledge and access to financial capital (Fairlie et al. 2012). Examining differences in job-creating innovation behavior between migrantand native-owned firms in the U.
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    issues such as cultural differences and language barriers (Borjas, Grogger & Hanson 2008), being less embedded in networks and social institutions which facilitates recruitment and informal transfer of knowledge and access to financial capital (Fairlie et al. 2012). Examining differences in job-creating innovation behavior between migrantand native-owned firms in the U.S. high-tech sector,
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    Brown et al. (2018)
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    confirm the self-selection hypothesis that migrant entrepreneurs with a background in science, engineering, and high-tech have distinct motivations for starting businesses as compared to the native-born.
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    This is reflected in a higher propensity to engage in R&D and innovation and to file for patents. The authors find higher rates of innovation in migrant-owned firms for 24 of 26 different indicators studied. Using the same data as
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    Brown et al. (2018),
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    the U.S. Survey of Business Owners (SBO), and linked to a longitudinal database, Kerr & Kerr (2018) quantify the economic importance of a broader set—beyond the STEM population—of migrant entrepreneurs in terms of firm formation and job creation.
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    The authors find higher rates of innovation in migrant-owned firms for 24 of 26 different indicators studied. Using the same data as Brown et al. (2018), the U.S. Survey of Business Owners (SBO), and linked to a longitudinal database,
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    Kerr & Kerr (2018)
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    quantify the economic importance of a broader set—beyond the STEM population—of migrant entrepreneurs in terms of firm formation and job creation. They find that migrants create a disproportionately larger share of new firms than the native-born, but create fewer jobs on average.
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    They find that migrants create a disproportionately larger share of new firms than the native-born, but create fewer jobs on average. Much of the latter finding is explained by the industry and the geographic location of firms. In agreement with prior literature,
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    Kerr & Kerr (2018)
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    document a disproportionately large industrial concentration of migrant-owned startups. About half of the new ventures were in the accommodation and food services, retail trade, and professional and technical services 5 sectors.
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    In agreement with prior literature, Kerr & Kerr (2018) document a disproportionately large industrial concentration of migrant-owned startups. About half of the new ventures were in the accommodation and food services, retail trade, and professional and technical services 5 sectors. Many studies find, similar to
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    Vandor & Franke (2016),
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    that migrants are more entrepreneurial than host country nationals. However, to evaluate the broader economic impact of migrant entrepreneurship, necessity–based entrepreneurship should be separated from opportunity-based firm formation.
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