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Entrepreneurship and Survival Dynamics of Immigrants to the U.S. and their Descendants

Author

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  • Georgarakos, Dimitris

    (European Central Bank)

  • Tatsiramos, Konstantinos

    (University of Luxembourg)

Abstract

Many studies have explored the determinants of entering into entrepreneurship and the differences in self-employment rates across racial and ethnic groups. However, very little is known about the survival in entrepreneurship of immigrants to the U.S. and their descendants. Employing data from the Survey of Income and Program Participation, we find a lower survival probability in entrepreneurship for Mexican and other Hispanic immigrants, which does not carry on to their U.S.-born descendants. We also find that these two immigrant groups tend to enter entrepreneurship from unemployment or inactivity and they are more likely to exit towards employment in the wage sector, suggesting that entrepreneurship represents for them an intermediate step from non-employment to paid employment.

Suggested Citation

  • Georgarakos, Dimitris & Tatsiramos, Konstantinos, 2007. "Entrepreneurship and Survival Dynamics of Immigrants to the U.S. and their Descendants," IZA Discussion Papers 2792, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2792
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    Cited by:

    1. Nathan, Max, 2013. "The Wider Economic Impacts of High-Skilled Migrants: A Survey of the Literature," IZA Discussion Papers 7653, Institute of Labor Economics (IZA).
    2. Marilyn Young & John James Cater & Kevin James, 2019. "Examining Barriers To Success And Sources Of Assistance For U.S. Hispanic Female Entrepreneurs," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-22, June.
    3. Dimitris Georgarakos & Konstantinos Tatsiramos, 2009. "Immigrant self-employment: does intermarriage matter?," Research in Labor Economics, in: Ethnicity and Labor Market Outcomes, pages 253-271, Emerald Group Publishing Limited.
    4. José María Millán & Emilio Congregado & Concepción Román, 2010. "Determinants of Self-Employment Dynamics and their Implications on Entrepreneurial Policy Effectiveness," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 72, pages 45-76.
    5. Vera Rocha & Anabela Carneiro & Celeste Amorim Varum, 2013. "Entrepreneurship Dynamics: Entry Routes, Business-Owner's Persistence and Exit Modes," CEF.UP Working Papers 1310, Universidade do Porto, Faculdade de Economia do Porto.
    6. Gonzalo Castañeda, 2013. "The Rise and Fall of the Barcelonnettes in Mexico and their Implications for a Theory of Entrepreneurial Diasporas," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(4, Cierre), pages 497-540.
    7. Vera Rocha & Anabela Carneiro & Celeste Varum, 2015. "Entry and exit dynamics of nascent business owners," Small Business Economics, Springer, vol. 45(1), pages 63-84, June.
    8. Georgarakos, Dimitris & Tatsiramos, Konstantinos, 2009. "Entrepreneurship and survival dynamics of immigrants to the U.S. and their descendants," Labour Economics, Elsevier, vol. 16(2), pages 161-170, April.
    9. Douglas Cumming & Uwe Walz & Jochen Christian Werth, 2016. "Entrepreneurial Spawning: Experience, Education, and Exit," The Financial Review, Eastern Finance Association, vol. 51(4), pages 507-525, November.
    10. Jonas Debrulle, 2016. "The Role of Entrepreneurship in the Context of Career Trajectories: Moving Back into Wage Employment or into Unemployment?," LABOUR, CEIS, vol. 30(2), pages 180-197, June.
    11. Konon, Alexander, 2015. "Personality traits, subjective learning, and entrepreneurial decision making," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112805, Verein für Socialpolitik / German Economic Association.
    12. Dr Max Nathan, 2013. "The wider economic impacts of high-skilled migrants: a survey of the literature," National Institute of Economic and Social Research (NIESR) Discussion Papers 413, National Institute of Economic and Social Research.
    13. Zaharieva, Anna & Iftikhar, Zainab, 2024. "Job Search, Entrepreneurship and Labour Market Outcomes of Natives and Immigrants in Germany," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302348, Verein für Socialpolitik / German Economic Association.
    14. Green, David A. & Liu, Huju & Ostrovsky, Yuri & Picot, Garnett, 2023. "Are Immigrants Particularly Entrepreneurial? Policy Lessons from a Selective Immigration System," IZA Discussion Papers 16515, Institute of Labor Economics (IZA).
    15. Gergely Horváth & Rui Zhang, 2022. "Ethnic entrepreneurship, assimilation, and integration policy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(4), pages 781-816, August.
    16. Robert W. Fairlie & Harry Krashinsky & Julie Zissimopoulos & Krishna B. Kumar, 2012. "Indian Entrepreneurial Success in the United States, Canada, and the United Kingdom," Research in Labor Economics, in: Research in Labor Economics, pages 285-318, Emerald Group Publishing Limited.
    17. Schanne, Norbert & Weyh, Antje, 2009. "What makes start-ups out of unemployment different?," IAB-Discussion Paper 200904, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    18. Elisabeth Mueller, 2014. "Entrepreneurs from low-skilled immigrant groups in knowledge-intensive industries: company characteristics, survival and innovative performance," Small Business Economics, Springer, vol. 42(4), pages 871-889, April.
    19. Berrittella, Maria, 2012. "Modelling the labour market of minority ethnic groups," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 389-402.
    20. Bellido-Jiménez, Víctor Manuel & Martín-Martín, Domingo & Romero Luna, Isidoro, 2022. "Autoempleo en inmigrantes y supervivencia empresarial de los negocios incubados en Andalucía," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 52, pages 59-80.
    21. Grashuis, Jasper, 2021. "Self-employment duration during the COVID-19 pandemic: A competing risk analysis," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    22. Rezaee Vessal, Saeedeh & Partouche-Sebban, Judith & Scuotto, Veronica & Maalaoui, Adnane, 2021. "Overcoming stressful life events at do-it-yourself (DIY) laboratories. A new trailblazing career for disadvantaged entrepreneurs," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    23. Millán, José María & Congregado, Emilio & Román, Concepción, 2014. "Persistence in entrepreneurship and its implications for the European entrepreneurial promotion policy," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 83-106.
    24. José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.
    25. Cumming, Douglas & Walz, Uwe & Werth, Jochen Christian, 2015. "The dynamics of entrepreneurial careers in high-tech ventures: Experience, education, and exit," SAFE Working Paper Series 122, Leibniz Institute for Financial Research SAFE.

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    More about this item

    Keywords

    entrepreneurship; business ownership; duration analysis; left truncation; immigrant status;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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