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Mexican-American self-employment: a dynamic analysis of business ownership

In: Ethnicity and Labor Market Outcomes

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  • Magnus Lofstrom
  • Chunbei Wang

Abstract

This paper analyzes causes of the low self-employment rate among Mexican-Americans by studying self-employment entry and exits utilizing panel data from the Survey of Income and Program Participation (SIPP). Our results indicate that differences in education and financial wealth are important factors in explaining differences in entrepreneurship across groups. Importantly, we analyze self-employment by recognizing heterogeneity in business ownership across industries and show that a classification of firms by human and financial capital intensiveness, or entry barriers, is effective in explaining differences in entrepreneurship across ethnic groups.

Suggested Citation

  • Magnus Lofstrom & Chunbei Wang, 2009. "Mexican-American self-employment: a dynamic analysis of business ownership," Research in Labor Economics, in: Ethnicity and Labor Market Outcomes, pages 197-227, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-9121(2009)0000029010
    DOI: 10.1108/S0147-9121(2009)0000029010
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    Citations

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    Cited by:

    1. Robert W. Fairlie, 2020. "The Impact of Covid-19 on Small Business Owners: Evidence of Early-Stage Losses from the April 2020 Current Population Survey," NBER Working Papers 27309, National Bureau of Economic Research, Inc.
    2. Fairlie, Robert W. & Lofstrom, Magnus, 2013. "Immigration and Entrepreneurship," IZA Discussion Papers 7669, Institute of Labor Economics (IZA).
    3. Robert Fairlie & Robert W. Fairlie, 2023. "The Impacts of Covid-19 on Racial Inequality in Business Earnings," CESifo Working Paper Series 10634, CESifo.
    4. Chunbei Wang & Magnus Lofstrom, 2020. "September 11 and the Rise of Necessity Self-Employment Among Mexican Immigrants," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(1), pages 5-33, January.
    5. Fairlie, Robert, 2020. "The Impact of COVID-19 on Small Business Owners: The First Three Months after Social-Distancing Restrictions," MPRA Paper 113127, University Library of Munich, Germany.
    6. Fairlie, Robert W., 2023. "The Impacts of COVID-19 on Racial Inequality in Business Earnings," IZA Discussion Papers 16412, Institute of Labor Economics (IZA).
    7. Amuedo-Dorantes, Catalina & Borra, Cristina & Wang, Chunbei, 2021. "Asian Discrimination in the Coronavirus Era: Implications for Business Formation and Survival," IZA Discussion Papers 14182, Institute of Labor Economics (IZA).
    8. Robert W. Fairlie, 2022. "The Impacts of COVID-19 on Racial Inequality in Business Earnings," NBER Working Papers 30532, National Bureau of Economic Research, Inc.
    9. Magnus Lofstrom, 2011. "Low-skilled immigrant entrepreneurship," Review of Economics of the Household, Springer, vol. 9(1), pages 25-44, March.
    10. Fairlie, Robert W, 2020. "The Impact of COVID-19 on Small Business Owners: Continued Losses and the Partial Rebound in May 2020," Santa Cruz Department of Economics, Working Paper Series qt21f993s2, Department of Economics, UC Santa Cruz.
    11. Bohn, Sarah & Lofstrom, Magnus, 2012. "Employment Effects of State Legislation against the Hiring of Unauthorized Immigrant Workers," IZA Discussion Papers 6598, Institute of Labor Economics (IZA).

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