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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Volume (Year): 33 (2009)
Issue (Month): 4 (December)
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- Robert W. Fairlie & Christopher Woodruff, 2007.
"Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States,"
NBER Chapters,in: Mexican Immigration to the United States, pages 123-158
National Bureau of Economic Research, Inc.
- Robert Fairlie & Christopher Woodruff, 2005. "Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States," NBER Working Papers 11527, National Bureau of Economic Research, Inc.
- 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).