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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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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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