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The Impact of Ethnic Communities on Immigrant Entrepreneurship: Evidence from Sweden

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  • Tavassoli, Sam

    () (RMIT University)

  • Trippl, Michaela

    () (University of Vienna)

Abstract

This paper seeks to provide novel insights into the effects of ethnic communities on immigrants’ entrepreneurial activities. We investigate to what extent the decision of an employed immigrant to become an entrepreneur is associated with his or her embeddedness in ethnic networks in the host region. We capture such embeddedness through various mechanisms. Using longitudinal registered-data from Sweden and employing a Logit model, we find that merely being located in an ethnic community does not have an influence on immigrant entrepreneurship; rather what matters is being located in ethnic communities that have a high share of entrepreneurs themselves.

Suggested Citation

  • Tavassoli, Sam & Trippl, Michaela, 2017. "The Impact of Ethnic Communities on Immigrant Entrepreneurship: Evidence from Sweden," Papers in Innovation Studies 2017/17, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  • Handle: RePEc:hhs:lucirc:2017_017
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    References listed on IDEAS

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    1. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2003. "Ethnic Enclaves and the Economic Success of Immigrants—Evidence from a Natural Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 118(1), pages 329-357.
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    5. Luigi Guiso & Fabiano Schivardi, 2011. "What Determines Entrepreneurial Clusters?," Journal of the European Economic Association, European Economic Association, vol. 9(1), pages 61-86, February.
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    7. Anna Piil Damm, 2009. "Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi-Experimental Evidence," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 281-314, April.
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    Cited by:

    1. Alessandra Colombelli & Elena Grinza & Valentina Meliciani & Mariacristina Rossi, 2020. "Pulling Effects in Migrant Entrepreneurship: Does Gender Matter?," SPRU Working Paper Series 2020-05, SPRU - Science Policy Research Unit, University of Sussex Business School.

    More about this item

    Keywords

    Immigrants; entrepreneurship; ethnic communities; embeddedness; social capital;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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