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Latina Entrepreneurship

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  • Lofstrom, Magnus

    (Public Policy Institute of California)

  • Bates, Timothy

    (Wayne State University, Detroit)

Abstract

We utilize individual panel data from the 1996 and 2001 Survey of Income and Program Participation (SIPP) to analyze the relative success of self-employed female Hispanics. To allow for a meaningful comparison of earnings between self-employed and wage/salary employed women, we generate different earnings measures addressing the role of business equity. We compare earnings of Hispanic female entrepreneurs to both Latina wage/salary workers and to self-employed female non-Hispanic whites. Latina entrepreneurs are observed to have lower mean earnings than both white female entrepreneurs and Latina employees. However, our findings indicate that Latina entrepreneurs often do well, once differences in mean observable characteristics, such as education, are taken into account. Self-employed Latinas are estimated to earn more than observationally similar nonminority white female entrepreneurs and slightly less than observationally similar Latinas in wage/salary work.

Suggested Citation

  • Lofstrom, Magnus & Bates, Timothy, 2009. "Latina Entrepreneurship," IZA Discussion Papers 3997, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3997
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    References listed on IDEAS

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    1. Robert W. Fairlie & Christopher Woodruff, 2007. "Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States," NBER Chapters, in: Mexican Immigration to the United States, pages 123-158, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Craig Wesley Carpenter & Scott Loveridge, 2018. "Differences Between Latino-Owned Businesses and White-, Black-, or Asian-Owned Businesses: Evidence From Census Microdata," Economic Development Quarterly, , vol. 32(3), pages 225-241, August.
    2. Magnus Lofstrom, 2011. "Low-skilled immigrant entrepreneurship," Review of Economics of the Household, Springer, vol. 9(1), pages 25-44, March.
    3. Maria Abreu & Pelin Demirel & Vadim Grinevich & Mine Karataş-Özkan, 2016. "Entrepreneurial practices in research-intensive and teaching-led universities," Small Business Economics, Springer, vol. 47(3), pages 695-717, October.
    4. Lynn E. Browne & Sol Carbonell & Prabal Chakrabarti & DeAnna Green & Yolanda Kodrzycki & Ana Patricia Munoz & Anna Steiger & Richard Walker & Bo Zhao, 2011. "Small businesses in Springfield, Massachusetts: a look at Latino entrepreneurship," Public and Community Affairs Discussion Papers 2011-2, Federal Reserve Bank of Boston.
    5. Fairlie, Robert W. & Lofstrom, Magnus, 2013. "Immigration and Entrepreneurship," IZA Discussion Papers 7669, Institute of Labor Economics (IZA).
    6. Michael J. Pisani & Joseph M. Guzman & Chad Richardson & Carlos Sepulveda & Lyonel Laulié, 2017. "“Small business enterprises and Latino entrepreneurship: An enclave or mainstream activity in South Texas?”," Journal of International Entrepreneurship, Springer, vol. 15(3), pages 295-323, September.
    7. Monica Fisher & Paul A. Lewin, 2018. "Push and pull factors and Hispanic self-employment in the USA," Small Business Economics, Springer, vol. 51(4), pages 1055-1070, December.
    8. Hamid Beladi & Saibal Kar, 2015. "Skilled and Unskilled Immigrants and Entrepreneurship in a Developed Country," Review of Development Economics, Wiley Blackwell, vol. 19(3), pages 666-682, August.
    9. Korpi, Martin & Hedberg, Charlotta & Pettersson, Katarina, 2013. "Immigrant Women and Entrepreneurship: A Study of the Health Care Sector in Sweden, 2002-2006," SULCIS Working Papers 2013:3, Stockholm University, Linnaeus Center for Integration Studies - SULCIS.
    10. Ruth Oyelere & Willie Belton, 2013. "Black–White gap in self-employment. Does intra-race heterogeneity exist?," Small Business Economics, Springer, vol. 41(1), pages 25-39, June.
    11. Yuri Ostrovsky & Garnett Picot & Danny Leung, 2019. "The financing of immigrant-owned firms in Canada," Small Business Economics, Springer, vol. 52(1), pages 303-317, January.
    12. Soren Newman & Darin Saul & Christy Dearien & Nancy Hernandez, 2023. "Self-Employment or Selfless Employment? Exploration of Factors that Motivate, Facilitate, and Constrain Latina Entrepreneurship from a Family Embeddedness Perspective," Journal of Family and Economic Issues, Springer, vol. 44(1), pages 206-219, March.

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    More about this item

    Keywords

    Latina; Hispanic; self-employment; entrepreneurship; female; minority;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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