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The role of Culture on Self-Employment

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  • MIRIAM MARCEN

Abstract

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.

Suggested Citation

  • Miriam Marcen, 2013. "The role of Culture on Self-Employment," ERSA conference papers ersa13p752, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa13p752
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    More about this item

    Keywords

    Self-Employment; Culture;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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