Immigrant Entrepreneurs as Job Creators: The Case of Canadian Private Incorporated Companies

This paper focuses on job creation and destruction by private incorporated companies with immigrant and Canadian-born owners, and uses data covering the 2003-to-2013 period. The unadjusted (raw) data indicated that average annual net job growth per firm was higher among immigrant-owned firms than among firms with Canadian-born owners, as was the likelihood of being a high-growth firm. Regression analysis revealed that these differences were largely because immigrant-owned firms were younger on average, and younger firms create jobs at a higher rate. Moreover, immigrant-owned firms accounted for a disproportionate share of entering firms, which play a significant role in job creation. Because of the constant inflow of new immigrants, immigration led to the creation of a large number of new young firms. Through this process, immigrant-owned firms contributed disproportionately to net job creation over the period studied.

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