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Ethnic Competition or Complementarity: Which Drives (Returns to) Self-employment?

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  • Joanna Nestorowicz

    ()
    (Faculty of Economic Sciences, Centre of Migration Research, University of Warsaw)

  • Joanna Tyrowicz

    ()
    (Faculty of Economic Sciences, University of Warsaw, National Bank of Poland)

Abstract

This paper explores the relationship between ethnic competition and complementarity in returns to self-employment. We use detailed individual data from the U.S. censuses. We find that while in general business competition is detrimental to profitability, higher self-employment concentrations of co-ethnics are associated with increase in returns.

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File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP100.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2013-15.

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Length: 12 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:war:wpaper:2013-15

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Keywords: self-employment; ethnic entrepreneurship; competition; complementarity;

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  1. Berglann, Helge & Moen, Espen R. & Røed, Knut & Skogstrøm, Jens Fredrik, 2009. "Entrepreneurship: Origins and Returns," IZA Discussion Papers 4250, Institute for the Study of Labor (IZA).
  2. Lofstrom, Magnus, 1999. "Labor Market Assimilation and the Self-Employment Decision of Immigrant Entrepreneurs," IZA Discussion Papers 54, Institute for the Study of Labor (IZA).
  3. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
  4. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
  5. Demsetz, Harold, 1973. "Industry Structure, Market Rivalry, and Public Policy," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 1-9, April.
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