Arbeitspapier

Social Networks, Ethnicity, and Entrepreneurship

We study the relationship between ethnicity, occupational choice, and entrepreneurship. Immigrant groups in the United States cluster in specific business sectors. For example, the concentration of Korean self-employment in dry cleaners is 34 times greater than other immigrant groups, and Gujarati-speaking Indians are similarly 108 times more concentrated in managing motels. We develop a model of social interactions where non-work relationships facilitate the acquisition of sector-specific skills. The resulting scale economies generate occupational stratification along ethnic lines, consistent with the reoccurring phenomenon of small, socially-isolated groups achieving considerable economic success via concentrated entrepreneurship. Empirical evidence from the United States supports our model’s underlying mechanisms.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 6211

Klassifikation
Wirtschaft
Entrepreneurship
Firm Behavior: Theory
Firm Behavior: Empirical Analysis
Network Formation and Analysis: Theory
International Migration
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Transactional Relationships; Contracts and Reputation; Networks
New Firms; Startups
Thema
entrepreneurship
self-employed
occupation
ethnicity
immigration
networks

Ereignis
Geistige Schöpfung
(wer)
Kerr, William R.
Mandorff, Martin
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2016

Handle
Letzte Aktualisierung
20.09.2024, 08:23 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Kerr, William R.
  • Mandorff, Martin
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2016

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