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Immigrant Self-Employment: Does Intermarriage Matter?

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Author Info

  • Georgarakos, Dimitris

    ()
    (Goethe University Frankfurt)

  • Tatsiramos, Konstantinos

    ()
    (University of Nottingham)

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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Bibliographic 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: 26 pages
Date of creation: Aug 2009
Date of revision:
Publication status: published in: Research in Labor Economics, 2009, 29, 253-271
Handle: RePEc:iza:izadps:dp4350

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

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References

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  1. Bisin, A. & Verdier, T., 1999. "Beyond the Melting Pot: Cultural Transmission, Marriage, and the Evolution of Ethnic and Religious Traits," Papers, Laval - Laboratoire Econometrie 1999-10, Laval - Laboratoire Econometrie.
  2. 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.
  3. Delia Furtado & Nikolaos Theodoropoulos, 2009. "Intermarriage and Immigrant Employment: The Role of Networks," University of Cyprus Working Papers in Economics 3-2009, University of Cyprus Department of Economics.
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  12. 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).
  13. Chiswick, Barry R. & Houseworth, Christina A., 2010. "Ethnic Intermarriage among Immigrants: Human Capital and Assortative Mating," SULCIS Working Papers 2010:8, Stockholm University Linnaeus Center for Integration Studies - SULCIS.
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Cited by:
  1. 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.
  2. Nottmeyer, Olga, 2010. "Does Intermarriage Pay Off? A Panel Data Analysis," IZA Discussion Papers 5104, Institute for the Study of Labor (IZA).
  3. Olga Nottmeyer, 2010. "Does Intermarriage Pay Off?: A Panel Data Analysis," SOEPpapers on Multidisciplinary Panel Data Research 314, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. Delia Furtado & Stephen Trejo, 2012. "Interethnic Marriages and their Economic Effects," CReAM Discussion Paper Series 1205, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  5. Liliana Sousa, 2013. "Community Determinants Of Immigrant Self-Employment: Human Capital Spillovers And Ethnic Enclaves," Working Papers 13-21, Center for Economic Studies, U.S. Census Bureau.
  6. Nottmeyer, Olga, 2011. "Couple's Relative Labor Supply in Intermarriage," IZA Discussion Papers 5567, Institute for the Study of Labor (IZA).
  7. Chunbei Wang & Le Wang, 2012. "The effects of 9/11 on intermarriage between natives and immigrants to the U.S," Review of Economics of the Household, Springer, vol. 10(2), pages 171-192, June.
  8. Olga Nottmeyer, 2010. "Does Intermarriage Pay Off?: A Panel Data Analysis," Discussion Papers of DIW Berlin 1044, DIW Berlin, German Institute for Economic Research.

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