Scandinavian Working Papers in Economics

Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

No 474: Migrant STEM Entrepreneurs

Christopher F Baum (), Linda Dastory (), Hans Lööf () and Andreas Stephan ()
Additional contact information
Christopher F Baum: Boston College, DIW Berlin, and Centre of Excellence for Science and Innovation Studies (CESIS)
Linda Dastory: The Department of Industrial Economics and Management, Royal Institute of Technology
Hans Lööf: Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology
Andreas Stephan: Jönköping University, DIW Berlin, and Centre of Excellence for Science and Innovation Studies (CESIS)

Abstract: STEM workers are considered to be key drivers for economic growth in the developed world. Migrant workers play an increasing role in the supply of this occupational category. We study the universe of STEM workers in the Swedish economy over the period 2003-2015 and find that migrants are less likely to form their own business, but those who are entrepreneurs earn income at least as large as that of their native-born counterparts. While the income differential for economic migrants may be partially explained by self-selection, the estimated effect is not significantly different between natives and refugee migrants.

Keywords: STEM; migration; entrepreneurship; income; panel data

JEL-codes: F22; J44; J61; L26; O14

22 pages, October 15, 2018

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