Residential Segregation Influences on the Likelihood of Ethnic Self-Employment
41 Pages Posted: 9 Oct 2007 Last revised: 29 Sep 2009
Geographic and environmental influences on economic action have a long history in managerial research. This paper develops and estimates a model of the potential of a broad set of U.S. racial minority groups to enter self-employment based on individual, household, and metropolitan area level factors. The model allows for an analysis of two distinct residential segregation processes on self-employment likelihood. Results indicate that clustering by race has group-specific influences, increasing the likelihood of self-employment for some groups and diminishing for others. Higher levels of racial exposure raise the likelihood of entrepreneurial careers for all groups, but especially for blacks.
Keywords: Segregation, Self-employment, Environmental Influences, Racial Groups
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