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Latina entrepreneurship

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  • Magnus Lofstrom

    ()

  • Timothy Bates

Abstract

We utilize individual panel data from the 1996 and 2001 Survey of Income and Program Participation (SIPP) to analyze the relative success of self-employed female Hispanics. To allow for a meaningful comparison of earnings between self-employed and wage/salary employed women, we generate different earnings measures addressing the role of business equity. We compare earnings of Hispanic female entrepreneurs to both Latina wage/salary workers and to self-employed female non-Hispanic whites. Latina entrepreneurs are observed to have lower mean earnings than both white female entrepreneurs and Latina employees. However, our findings indicate that Latina entrepreneurs often do well, once differences in mean observable characteristics, such as education, are taken into account. Self-employed Latinas are estimated to earn more than observationally similar nonminority white female entrepreneurs and slightly less than observationally similar Latinas in wage/salary work.

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File URL: http://hdl.handle.net/10.1007/s11187-009-9203-9
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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 33 (2009)
Issue (Month): 4 (December)
Pages: 427-439

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Handle: RePEc:kap:sbusec:v:33:y:2009:i:4:p:427-439

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Web page: http://www.springerlink.com/link.asp?id=100338

Related research

Keywords: Latina; Hispanic; Entrepreneurship; Minority; Female; Self-employment; J15; J16; J31; L26;

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  1. Fairlie, Robert W. & Woodruff, Christopher, 2006. "Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States," IZA Discussion Papers 2039, Institute for the Study of Labor (IZA).
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Cited by:
  1. Ana Patricia Muñoz & with Lynn Browne & Sol Carbonell & Prabal Chakrabarti & DeAnna Green & Yolanda K. Kodrzycki & Anna Steiger & Richard Walker & Bo Zhao, 2011. "Small businesses in Springfield, Massachusetts: a look at Latino entrepreneurship," Public and Community Affairs Discussion Papers 2011-2, Federal Reserve Bank of Boston.
  2. Korpi, Martin & Hedberg, Charlotta & Pettersson, Katarina, 2013. "Immigrant Women and Entrepreneurship: A Study of the Health Care Sector in Sweden, 2002-2006," SULCIS Working Papers 2013:3, Stockholm University Linnaeus Center for Integration Studies - SULCIS.
  3. Ruth Oyelere & Willie Belton, 2013. "Black–White gap in self-employment. Does intra-race heterogeneity exist?," Small Business Economics, Springer, vol. 41(1), pages 25-39, June.
  4. Magnus Lofstrom, 2011. "Low-skilled immigrant entrepreneurship," Review of Economics of the Household, Springer, vol. 9(1), pages 25-44, March.

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