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Push and pull factors and Hispanic self-employment in the USA

Author

Listed:
  • Monica Fisher

    (University of Idaho)

  • Paul A. Lewin

    (University of Idaho)

Abstract

This study examines the main push and pull factors driving Hispanic self-employment in the USA by modeling the self-employment decision as a function of sectoral earnings differences, country of origin, and other factors. Findings indicate that a main reason Hispanics engage in self-employment is they can earn more working for themselves than in wage/salary work. Immigrants appear to be pushed into self-employment as a result of limited opportunities in the wage work sector. Although low relative earnings in wage/salary work could push workers with limited English proficiency into self-employment, our findings indicate barriers to this. Results suggest that workers pulled into self-employment are those with more work experience and a college degree. Workers who originate from Southern South America and Colombia have relatively high self-employment rates, while Mexico-origin workers have relatively low self-employment rates. We also uncover differences across Hispanic origin groups in terms of the influence of gender, education, and personal wealth on self-employment participation.

Suggested Citation

  • Monica Fisher & Paul A. Lewin, 2018. "Push and pull factors and Hispanic self-employment in the USA," Small Business Economics, Springer, vol. 51(4), pages 1055-1070, December.
  • Handle: RePEc:kap:sbusec:v:51:y:2018:i:4:d:10.1007_s11187-018-9987-6
    DOI: 10.1007/s11187-018-9987-6
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