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The role of Culture on Self-Employment

  • MIRIAM MARCEN

There is an extensive literature examining the determinants of self-employment. These studies have mainly failed to account for the differences in entrepreneurial spirit across countries. This paper explores the role of culture in self-employment by exploiting variation in historical self-employment rates by country of origin of second-generation immigrants. Since second-generation immigrants are born in the U.S., all of them live under American laws and institutions. Thus, we interpret differences in self-employment rates by country of origin as evidence of the effect of culture. Using this epidemiological approach, we find that culture has quantitatively significant effects the self-employment decision.

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File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa13/ERSA2013_paper_00752.pdf
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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa13p752.

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Date of creation: Nov 2013
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Handle: RePEc:wiw:wiwrsa:ersa13p752
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  11. Brügger, Beatrix & Lalive, Rafael & Zweimüller, Josef, 2009. "Does Culture Affect Unemployment? Evidence from the Röstigraben," IZA Discussion Papers 4283, Institute for the Study of Labor (IZA).
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  25. Andersson Joona, Pernilla & Wadensjö, Eskil, 2008. "A Gender Perspective on Self-Employment Entry and Performance as Self-Employed," IZA Discussion Papers 3581, Institute for the Study of Labor (IZA).
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