Mexican-Hispanic Self-Employment Entry

The Role of Business Start-Up Constraints

Bibliographic Data

ID9757220
AuthorsMagnus Lofstrom (The University of Texas at Dallas, corresponding author), Chunbei Wang (0000-0003-1391-1594, The University of Texas at Dallas)
Year2007
Volume613
Issue1
Pages32-46
Publication date2007-09-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Annals of the American Academy of Political and Social Science (JOURNAL)
Journal identifiersISSN: 0002-7162 • E-ISSN: 1552-3349
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/0002716207303577
OpenAlexW2139838676
LanguageEN
Citations received7
References cited17

This article examines causes of the low self-employment rates among Mexican-Hispanics by studying self-employment entry using the 1996 panel of the Survey of Income and Program Participation (SIPP). The data show that Mexican-Hispanics are less likely to be self-employed or enter self-employment, relative to non-Hispanic whites. The authors analyze self-employment by recognizing heterogeneity in business ownership across industries and show that a classification of firms by human and financial capital “intensiveness,” or entry barriers, is effective in explaining differences in entrepreneurship across ethnic groups. The authors show that the lower self-employment entry rates among Mexican-Hispanics are due to lower entry rates into business ownership of firms in relatively high-barrier industries. In fact, Hispanics are more likely to start up a business in a low-barrier industry than whites

Barriers to entry · Business · Demographic economics · Economic growth · Economics · Entrepreneurship · Entry Level · Ethnic group · Human capital · Labour economics · Mexican americans · Panel data · Political science · Self-employment · Sociology · Survey data collection · Survey of Income and Program Participation · Entrepreneurship Studies and Influences · Family Business Performance and Succession · Finance · Migration, Ethnicity, and Economy