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Abstract

Many studies have explored the determinants of entering into entrepreneurship and the differences in self-employment rates across racial and ethnic groups. However, very little is known about the survival in entrepreneurship of immigrants to the U.S. and their descendants. We adopt a modeling framework based on duration analysis, which takes into account both the fact that the stock of entrepreneurs initially observed represents a selected sample and the inability of observing in the data the exit time for some spells. Unlike previous studies, we find a lower survival probability in entrepreneurship for Mexican and other Hispanic immigrants, which does not carry on to their U.S.-born descendants. We also find that these two immigrant groups tend to enter entrepreneurship from unemployment or inactivity and they are more likely to exit towards employment in the wage sector, suggesting that entrepreneurship represents for them an intermediate step from non-employment to paid employment.

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File URL: http://www.sciencedirect.com/science/article/B6VFD-4TCYCF7-1/2/d6cb640eec1bcb70596b81ba6ef41bca
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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 16 (2009)
Issue (Month): 2 (April)
Pages: 161-170

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Handle: RePEc:eee:labeco:v:16:y:2009:i:2:p:161-170

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Entrepreneurship Business ownership Duration analysis Left-truncation Immigrant status;

Other versions of this item:

Find related papers by JEL classification:

• F22 - International Economics - - International Factor Movements and International Business - - - International Migration
• J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
• J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
• C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

References

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   • Georgarakos, Dimitris & Tatsiramos, Konstantinos, 2007. "Entrepreneurship and Survival Dynamics of Immigrants to the U.S. and their Descendants," IZA Discussion Papers 2792, Institute for the Study of Labor (IZA).
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11. Chiswick, Barry R, 1977. "Sons of Immigrants: Are They at an Earnings Disadvantage?," American Economic Review, American Economic Association, vol. 67(1), pages 376-80, February.
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15. Robert W. Fairlie & Bruce D. Meyer, 1996. "Ethnic and Racial Self-Employment Differences and Possible Explanations," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 757-793.
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    • William M. Gentry & R. Glenn Hubbard, 2005. ""Success Taxes," Entrepreneurial Entry, and Innovation," NBER Chapters, in: Innovation Policy and the Economy, Volume 5, pages 87-108 National Bureau of Economic Research, Inc.
17. Fairlie, Robert W, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 80-108, January.
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19. Tamás Bartus, 2005. "Estimation of marginal effects using margeff," Stata Journal, StataCorp LP, vol. 5(3), pages 309-329, September.

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Cited by:

1. Schanne, Norbert & Weyh, Antje, 2009. "What makes start-ups out of unemployment different?," IAB Discussion Paper 200904, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
2. Georgarakos, Dimitris & Tatsiramos, Konstantinos, 2009. "Immigrant Self-Employment: Does Intermarriage Matter?," IZA Discussion Papers 4350, Institute for the Study of Labor (IZA).
3. Georgarakos, Dimitris & Tatsiramos, Konstantinos, 2007. "Entrepreneurship and Survival Dynamics of Immigrants to the U.S. and their Descendants," IZA Discussion Papers 2792, Institute for the Study of Labor (IZA).
   
   • Georgarakos, Dimitris & Tatsiramos, Konstantinos, 2009. "Entrepreneurship and survival dynamics of immigrants to the U.S. and their descendants," Labour Economics, Elsevier, vol. 16(2), pages 161-170, April.
4. José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.

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