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Undocumented immigrants and the growth of Hispanic entrepreneurship

Author

Listed:
  • Chunbei Wang

    (Virginia Tech)

  • Le Wang

    (Virginia Tech)

Abstract

Over the last two decades, there has been a significant surge in the self-employment rate among Hispanics, especially among Hispanic immigrants. However, the reasons behind this increase remain underexplored. This paper addresses this gap by examining the role of undocumented immigrants, a substantial part of the Hispanic immigrant population, by discerning immigrants’ legal status in the Current Population Survey–Annual Social and Economic data (1994–2018). The findings reveal that the nearly doubled self-employment rate among Hispanic immigrants is primarily driven by undocumented individuals, especially those of Mexican origin. A key factor is the post-9/11 tightening of immigration enforcement, which worsened job prospects for undocumented immigrants, pushing many into self-employment. This event triggered a distinct pattern in Hispanic self-employment, setting it apart from other demographic groups. Other factors, such as business cycles, state-level immigration policies, the gig economy, and the growth of the Hispanic community, also contribute but play a lesser role.

Suggested Citation

  • Chunbei Wang & Le Wang, 2025. "Undocumented immigrants and the growth of Hispanic entrepreneurship," Small Business Economics, Springer, vol. 65(1), pages 163-189, June.
    • Handle: RePEc:kap:sbusec:v:65:y:2025:i:1:d:10.1007_s11187-024-00987-z
    DOI: 10.1007/s11187-024-00987-z
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