Social Networks, Ethnicity, and Entrepreneurship

William Kerr and Martin Mandorff

Journal of Human Resources, 2023, vol. 58, issue 1, 183-220

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: 2023
Note: DOI: 10.3368/jhr.58.3.0719-10306R2
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Social Networks, Ethnicity, and Entrepreneurship (2016)
Working Paper: Social Networks, Ethnicity, and Entrepreneurship (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:58:y:2023:i:1:p:183-220

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