Learning Entrepreneurship From my Neighbors: Refugee Migration and Entrepreneurship in Denmark

Abstract:

A central question in entrepreneurship discipline is who chooses to become an entrepreneur. This proposal aims to explore the causal effect of environment exposure on entrepreneurship rates and success among refugee immigrants. Immigrants living in areas high in firm density can benefit from learning skills necessary for venture creation and new venture success. A main challenge with prior research studying the link between environment and entry to entrepreneurship is the endogenous nature of the residency, that may have been motivated for the pursuit of economic opportunities including decisions to engage in entrepreneurial activity. Our study addresses the key problem of immigrant sorting by exploiting a policy that assigned refugee immigrants to municipalities on a quasi-random basis in Denmark. We aim to provide policy insights into labor market integration through sustainable self-employment for immigrants.