@article {Kerr0719-10306R2, author = {William R. Kerr and Martin Mandorff}, title = {Social Networks, Ethnicity, and Entrepreneurship}, elocation-id = {0719-10306R2}, year = {2021}, doi = {10.3368/jhr.58.3.0719-10306R2}, publisher = {University of Wisconsin Press}, 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.}, issn = {0022-166X}, URL = {https://jhr.uwpress.org/content/early/2021/01/04/jhr.58.3.0719-10306R2}, eprint = {https://jhr.uwpress.org/content/early/2021/01/04/jhr.58.3.0719-10306R2.full.pdf}, journal = {Journal of Human Resources} }