Entrepreneurship and Survival Dynamics of Immigrants to the U.S. and Their Descendants
38 Pages Posted: 23 May 2007
Date Written: May 2007
Many studies have explored the determinants of entering into entrepreneurship and the differences in self-employment rates across racial and ethnic groups. However, very little is known about the survival in entrepreneurship of immigrants to the U.S. and their descendants. Employing data from the Survey of Income and Program Participation, we find a lower survival probability in entrepreneurship for Mexican and other Hispanic immigrants, which does not carry on to their U.S.-born descendants. We also find that these two immigrant groups tend to enter entrepreneurship from unemployment or inactivity and they are more likely to exit towards employment in the wage sector, suggesting that entrepreneurship represents for them an intermediate step from non-employment to paid employment.
Keywords: entrepreneurship, business ownership, duration analysis, left truncation, immigrant status
JEL Classification: F22, J15, J82, C41
Suggested Citation: Suggested Citation