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Essays in entrepreneurship among foreign individuals
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We study how countries of origin affect foreign individuals’ choice between
salaried work and entrepreneurship upon arrival to the host country. Using a change
in the Portuguese immigration law we evaluate the impact of reducing regulations on
entrepreneurship upon the probability of foreign individuals choose entrepreneurship
upon arrival. We find that foreigners from countries more dissimilar to the host
country and those from wealthier countries are more likely engage in entrepreneurship
upon arrival than those from similar countries. Foreigners from countries outside the
European Economic Area, who have to fulfil requirements that are not required to
those from countries within this area, are less likely to enter the labor market as
entrepreneurs than those from countries within this area. According to our findings
reducing legal requirements to foreign entrepreneurship may encourage foreigners to
engage in entrepreneurship upon arrival, although such impact is not considerable.