Do welfare policies matter for immigrant entrepreneurship? An analysis in the context of France

Abstract

AbstractThere is little research on the relationship between welfare policies and immigrant entrepreneurship. Accordingly, this paper examines changes in three welfare domains: child‐care, health/medical insurance, and unemployment insurance in the context of France since roughly the 1980s, but with a focus on the 21st century. Given changes in French welfare policy, I show that immigrants' greater access to fluctuating, sometimes declining, but overall increasing spending in the three domains, can be positively correlated with slowly increasing immigrant entrepreneurship since the early 2000s. However, I also argue that welfare policies do not seem to have a significant effect on the levels and survival of immigrant‐owned firms in France. The findings of this paper should nonetheless be taken with extreme caution in light of the obstacles to analyzing this relationship. As a consequence, I provide an assessment of three possible research designs as a route towards better understanding this relationship.