Entrepreneurship and Survival Dynamics of Immigrants to the U.S. and Their Descendants

38 Pages Posted: 23 May 2007

See all articles by Dimitris Georgarakos

Dimitris Georgarakos

European Central Bank (ECB) - Directorate General Research; Center for Financial Studies (CFS)

Konstantinos Tatsiramos

University of Luxembourg; Luxembourg Institute of Socio-Economic Research (LISER)

Date Written: May 2007

Abstract

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

Georgarakos, Dimitris and Tatsiramos, Konstantinos, Entrepreneurship and Survival Dynamics of Immigrants to the U.S. and Their Descendants (May 2007). IZA Discussion Paper No. 2792. Available at SSRN: https://ssrn.com/abstract=987840

Dimitris Georgarakos

European Central Bank (ECB) - Directorate General Research ( email )

Sonnemannstrasse 20
Frankfurt am Main, 60314
Germany

Center for Financial Studies (CFS) ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

Konstantinos Tatsiramos (Contact Author)

University of Luxembourg ( email )

L-1511 Luxembourg
Luxembourg

Luxembourg Institute of Socio-Economic Research (LISER) ( email )

11, Porte des Sciences
Campus Belval – Maison des Sciences Humaines
Esch-sur-Alzette, L-4366
Luxembourg

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