Baumol’s migrants:Productive and unproductive entrepreneurship and between-MSA migration
Principal Investigator(s): View help for Principal Investigator(s) Vincent Geloso; Justin Callais; Gary Wagner; Alicia Plemmons
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
|---|---|---|---|
| replication | 09/08/2025 12:53:PM |
Project Citation:
Geloso, Vincent, Callais, Justin, Wagner, Gary , and Plemmons, Alicia. Baumol’s migrants:Productive and unproductive entrepreneurship and between-MSA migration. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2025-09-08. https://doi.org/10.3886/E237784V1
Project Description
Summary:
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William Baumol proposes that there are two types of entrepreneurship: productive or unproductive. Productive entrepreneurship, characterized by innovation and efficient resource allocation, fosters economic growth and can act as a potent magnet for migration. Conversely, unproductive entrepreneurship, which often involves rent-seeking and regulatory circumvention, deters migration and potentially provokes out-migration. To test this link from the types of entrepreneurship and migration, we use a new index of entrepreneurship (productive and unproductive) in conjunction with a dataset covering migration to and from Metropolitan Statistical Areas (MSA) from 2005 to 2019. Our analysis reveals that regions high in productive entrepreneurship experience significant net in-migration, while those dominated by unproductive entrepreneurship see the opposite effect.
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