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The Influence of Role Models on Immigrant Self-Employment: A Spatial Analysis for Switzerland

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Listed author(s):
  • G. Guerra
  • R. Patuelli

Abstract

Theoretical and empirical research suggests a connection between the presence of role models and the emergence of entrepreneurs. Existing entrepreneurs may act as role models for self-employment candidates by providing successful examples. By explicitly considering the self-employment rates of the natives, which may influence locally the decisions of immigrants towards entrepreneurship, we develop a simple model that explains immigrant self-employment rates for a sample of 2,490 Swiss municipalities. In addition, we accommodate for the presence of spatial spillovers in the distribution of rates, and test a spatial autoregressive model which takes into account the average self-employment rates of immigrants living in nearby municipalities. Our evidence shows a significant (positive) effect of such spatial network effects, which are characterized by a quick distance decay, suggesting spatial spillovers at the household and social network level. Additionally, we show that local conditions and immigrant pool characteristics differ, with respect to self-employment choices, when examining separately urban and rural contexts.

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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number wp745.

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Date of creation: Mar 2011
Handle: RePEc:bol:bodewp:wp745
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Find related papers by JEL classification:
  • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
  • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
  • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
  • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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  1. Giuliano Guerra & Roberto Patuelli & Rico Maggi, 2012. "Ethnic concentration, cultural identity and immigrant self-employment in Switzerland," Chapters,in: Migration Impact Assessment, chapter 4, pages 147-171 Edward Elgar Publishing.
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  3. Kenneth Clark & Stephen Drinkwater & Derek Leslie, 1998. "Ethnicity and self-employment earnings in Britain 1973-95," Applied Economics Letters, Taylor & Francis Journals, vol. 5(10), pages 631-634.
  4. David Blanchflower & Andrew J. Oswald, 1990. "What Makes an Entrepreneur? Evidence on Inheritance and Capital Constraints," NBER Working Papers 3252, National Bureau of Economic Research, Inc.
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  6. Claudia Senik & Thierry Verdier, 2011. "Segregation, entrepreneurship and work values: the case of France," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1207-1234, October.
  7. Alberto Alesina & Eliana La Ferrara, 2003. "Ethnic Diversity and Economic Performance," Harvard Institute of Economic Research Working Papers 2028, Harvard - Institute of Economic Research.
  8. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
  9. Sueli Moro & Flavia Chein & Ana Flávia Machado, 2003. "Self-employment in Brazil and its determinants: a spatial analysis," Textos para Discussão Cedeplar-UFMG td204, Cedeplar, Universidade Federal de Minas Gerais.
  10. George J. Borjas, 1986. "The Self-Employment Experience of Immigrants," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 485-506.
  11. Edward P. Lazear, 1999. "Culture and Language," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 95-126, December.
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  17. Acs, Zoltan J & Preston, Lee, 1997. "Small and Medium-Sized Enterprises, Technology, and Globalization: Introduction to a Special Issue on Small and Medium-Sized Enterprises in the Global Economy," Small Business Economics, Springer, vol. 9(1), pages 1-6, February.
  18. Rees, Hedley & Shah, Anup, 1986. "An Empirical Analysis of Self-employment in the U.K," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 95-108, January.
  19. P. Mueller, 2006. "Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?," Small Business Economics, Springer, vol. 27(1), pages 41-58, August.
  20. Bruce D. Meyer, 1990. "Why Are There So Few Black Entrepreneurs?," NBER Working Papers 3537, National Bureau of Economic Research, Inc.
  21. Lindh, Thomas & Ohlsson, Henry, 1996. "Self-Employment and Windfall Gains: Evidence from the Swedish Lottery," Economic Journal, Royal Economic Society, vol. 106(439), pages 1515-1526, November.
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Cited by:

  1. Max Nathan, 2014. "The wider economic impacts of high-skilled migrants: a survey of the literature for receiving countries," LSE Research Online Documents on Economics 57370, London School of Economics and Political Science, LSE Library.
  2. Nathan, Max, 2013. "The Wider Economic Impacts of High-Skilled Migrants: A Survey of the Literature," IZA Discussion Papers 7653, Institute for the Study of Labor (IZA).
  3. Max Nathan, 2014. "The wider economic impacts of high-skilled migrants: a survey of the literature for receiving countries," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-20, December.
  4. Ken Clark & Stephen Drinkwater & Catherine Robinson, 2017. "Self-employment amongst migrant groups: new evidence from England and Wales," Small Business Economics, Springer, vol. 48(4), pages 1047-1069, April.
  5. repec:esr:resser:bkmnext216 is not listed on IDEAS
  6. Annie Tubadji & Peter Nijkamp, 2013. "Cultural Distance and Gravity Effects among Migrants," ERSA conference papers ersa13p484, European Regional Science Association.

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