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Legalizing Entrepreneurship / Dany Bahar, Bo Cowgill, Jorge Guzman.

NBER Working papersAvailable online

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Format:
Book
Author/Creator:
Bahar, Dany.
Contributor:
Cowgill, Bo.
Guzman, Jorge.
National Bureau of Economic Research.
Series:
Working Paper Series (National Bureau of Economic Research) no. w30624.
NBER working paper series no. w30624
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2022.
Summary:
We use administrative data linked to the complete formal business registry to study a 2018 policy shift in Colombia that made nearly half a million Venezuelan undocumented migrants eligible for a resident visa. Immigrants who receive the visa increase their economic activity in the form of higher entrepreneurship by a factor as high as 12, bringing it to parity with native Colombians four years later. To establish causal estimates, we develop a novel extension of a regression discontinuity design. Our design uses variation in the running-variable (coming from rain) to instrument for migrants' choices to apply for visas.
Notes:
November 2022.
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