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Do ethnic enclaves and networks promote immigrant self-employment?


  • Maude Toussaint-Comeau


The author assesses how ethnic enclaves and networks affect the self-employment decisions of immigrants in the U.S. She finds that ethnic networks play a positive role in the likelihood that immigrants will choose self-employment as an alternative to wage employment. However, there is no clear impact of ethnic geographical concentrations on the self-employment decision.

Suggested Citation

  • Maude Toussaint-Comeau, 2008. "Do ethnic enclaves and networks promote immigrant self-employment?," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q IV, pages 30-50.
  • Handle: RePEc:fip:fedhep:y:2008:i:qiv:p:30-50:n:v.32no.4

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    References listed on IDEAS

    1. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-827, August.
    2. 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.
    3. Cressy, Robert, 1996. "Are Business Startups Debt-Rationed?," Economic Journal, Royal Economic Society, vol. 106(438), pages 1253-1270, September.
    4. Marianne Bertrand & Erzo F. P. Luttmer & Sendhil Mullainathan, 2000. "Network Effects and Welfare Cultures," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 1019-1055.
    5. Borjas, George J., 1998. "To Ghetto or Not to Ghetto: Ethnicity and Residential Segregation," Journal of Urban Economics, Elsevier, vol. 44(2), pages 228-253, September.
    6. Case, A.C. & Katz, L.F., 1991. "The Company You Keep: The Effects Of Family And Neighborhood On Disadvantaged Younths," Harvard Institute of Economic Research Working Papers 1555, Harvard - Institute of Economic Research.
    7. Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, vol. 7(5), pages 603-628, September.
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    Cited by:

    1. Maani, Sholeh A. & Wang, Xingang & Rogers, Alan, 2015. "Network Effects, Ethnic Capital and Immigrants' Earnings Assimilation: Evidence from a Spatial, Hausman-Taylor Estimation," IZA Discussion Papers 9308, Institute for the Study of Labor (IZA).

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    Immigrants ; Self-employed;


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