Social Networks, Ethnicity, and Entrepreneurship

William Kerr and Martin Mandorff

No 21597, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the relationship between ethnicity, occupational choice, and entrepreneurship. Immigrant groups in the United States cluster in specific business sectors. For example, Koreans are 34 times more concentrated in self-employment for dry cleaning than other immigrant groups, and Gujarati-speaking Indians are 84 times more concentrated in managing motels. We quantify that smaller and more socially isolated ethnic groups display higher rates of entrepreneurial concentration. This is consistent with a model of social interactions where nonwork relationships facilitate the acquisition of sector-specific skills and result in occupational stratification along ethnic lines via concentrated entrepreneurship.

JEL-codes: D21 D22 D85 F22 J15 L14 L26 M13 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-bec, nep-cse, nep-ent, nep-ind, nep-mig, nep-sbm, nep-soc and nep-ure
Note: LS PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44)

Published as William R. Kerr & Martin Mandorff, 2023. "Social Networks, Ethnicity, and Entrepreneurship," Journal of Human Resources, vol 58(1), pages 183-220.

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Journal Article: Social Networks, Ethnicity, and Entrepreneurship (2023)
Working Paper: Social Networks, Ethnicity, and Entrepreneurship (2016)
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