Undocumented immigrants and the growth of Hispanic entrepreneurship

Chunbei Wang () and Le Wang
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Chunbei Wang: Virginia Tech
Le Wang: Virginia Tech

Small Business Economics, 2025, vol. 65, issue 1, No 7, 163-189

Abstract: Abstract Over the last two decades, there has been a significant surge in the self-employment rate among Hispanics, especially among Hispanic immigrants. However, the reasons behind this increase remain underexplored. This paper addresses this gap by examining the role of undocumented immigrants, a substantial part of the Hispanic immigrant population, by discerning immigrants’ legal status in the Current Population Survey–Annual Social and Economic data (1994–2018). The findings reveal that the nearly doubled self-employment rate among Hispanic immigrants is primarily driven by undocumented individuals, especially those of Mexican origin. A key factor is the post-9/11 tightening of immigration enforcement, which worsened job prospects for undocumented immigrants, pushing many into self-employment. This event triggered a distinct pattern in Hispanic self-employment, setting it apart from other demographic groups. Other factors, such as business cycles, state-level immigration policies, the gig economy, and the growth of the Hispanic community, also contribute but play a lesser role.

Keywords: Undocumented; Hispanic; Self-employment; 9/11; Immigration enforcement; J15; J18; J21; L26 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11187-024-00987-z

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