Levie, J.D. (2006) Migration, Ethnicity and the New Business Activity in the United Kingdom. Small Business Economics.
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This paper develops and tests hypotheses on the effect of migrant status and ethnicity on propensity to engage in new business activity at the individual level in the UK. It uses a database of 40,000 working age adults collected in 2003 and 2004. The hypotheses are tested using bivariate analysis (Pearson tests of independence) and multivariate analysis (binary logistic regression). Bivariate analysis suggests that new business activity varies with migrant status and ethnicity. Multivariate analysis suggests that migration increases the odds of engaging in new business activity, that the independent effect of ethnicity is marginal, and that being a recent ethnic minority migrant decreases the odds, after controlling for other individual level factors. At the regional level, a preliminary analysis suggests that gross migration flows, or migration churn, has a higher correlation with new business activity than other regional demographic or economic development measures.
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