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Immigrant Self-Employment: Does Intermarriage Matter?

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Author Info
Georgarakos, Dimitris () (Goethe University Frankfurt)
Tatsiramos, Konstantinos () (IZA)

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Abstract

This paper investigates the effect of a native spouse on the transitions into and out of entrepreneurship of male immigrants in the U.S. We find that those married to a native are less likely to start up a business compared to those married to an immigrant. This finding is robust when the endogeneity of being married to a native is taken into account. We also show that immigrants married to a native are significantly less likely to exit from entrepreneurship compared to their counterparts who are married to an immigrant. Our results point to an interesting asymmetric role of being intermarried in deciding to become an entrepreneur and for survival in entrepreneurship, which is consistent with a network effect. On the one hand, intermarriage reduces the chance of starting up a business possibly because better access to local networks can help transitions into other forms of employment (e.g. paid employment). On the other hand, superior access to local networks through marriage to a native spouse facilitates business survival.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4350.

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Length: 2009 pages
Date of creation: Aug 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4350

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Related research
Keywords: native spouse; migration; business ownership; social networks;

Other versions of this item:

Find related papers by JEL classification:
J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Holtz-Eakin, Douglas & Rosen, Harvey S & Weathers, Robert, 2000. " Horatio Alger Meets the Mobility Tables," Small Business Economics, Springer, vol. 14(4), pages 243-74, June. [Downloadable!] (restricted)
    Other versions:
  2. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
    Other versions:
  4. Calvo-Armengol, Antoni & Jackson, Matthew O., 2007. "Networks in labor markets: Wage and employment dynamics and inequality," Journal of Economic Theory, Elsevier, vol. 132(1), pages 27-46, January. [Downloadable!] (restricted)
  5. Blau, David M & Robins, Philip K, 1990. "Job Search Outcomes for the Employed and Unemployed," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 637-55, June. [Downloadable!] (restricted)
  6. Alberto Bisin & Thierry Verdier, 2000. ""Beyond The Melting Pot": Cultural Transmission, Marriage, And The Evolution Of Ethnic And Religious Traits," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 955-988, August. [Downloadable!] (restricted)
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  7. Kaivan Munshi, 2003. "Networks In The Modern Economy: Mexican Migrants In The U.S. Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(2), pages 549-599, May. [Downloadable!] (restricted)
  8. Delia Furtado & Nikolaos Theodoropoulos, 2009. "Intermarriage and Immigrant Employment: The Role of Networks," CReAM Discussion Paper Series 0906, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London, revised Mar 2009. [Downloadable!]
    Other versions:
  9. Borjas, George J, 1995. "Ethnicity, Neighborhoods, and Human-Capital Externalities," American Economic Review, American Economic Association, vol. 85(3), pages 365-90, June. [Downloadable!] (restricted)
    Other versions:
  10. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December. [Downloadable!] (restricted)
    Other versions:
  11. Xin Meng & Robert G. Gregory, 2005. "Intermarriage and the Economic Assimilation of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 135-176, January. [Downloadable!]
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This page was last updated on 2009-11-23.


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