Domestic migration and new business creation in the United States

Abstract

While an extensive line of research links international migration to entrepreneurship, less attention has been devoted to mobility within a country. This study examines the relationship between new business creation and migration between states in the United States, building on prior research associating education and entrepreneurship. In addition to tracking general migration patterns among the states, the study focuses on young, single and college-educated segment of the population. This segment may be less risk averse and more geographically mobile, and brings knowledge resources to the geographic areas where they choose to live. While overall levels of net migration did not predict new business creation, prior net migration of the young, single, college-educated was a statistically significant predictor. States that are attracting young, single, highly educated people are more entrepreneurially dynamic than would be indicated by overall levels of migration.

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