Ethnic Social Networks and Self-Employment of Immigrant Men in the US

Maude Toussaint-Comeau
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Maude Toussaint-Comeau: Federal Reserve Bank of Chicago, 230 S. LaSalle, Chicago, IL 60646, USA

Eastern Economic Journal, 2012, vol. 38, issue 1, 74-98

Abstract: This paper investigates empirically the importance of ethnic networks for self-employment decisions of immigrant men. The results confirm that ethnic networks, as conceptualized, are important. Consistent with a “pulled” effect framework, being surrounded by others from the same country of origin increases the probability of self-employment more so for individuals in groups with higher self-employment intensity than for individuals in groups with low self-employment intensity. Ethnic networks also work in other ways that are consistent with a “push” factor framework, enhancing the relative choice of self-employment for those with a presumably relative disadvantage in the labor market.

Date: 2012
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