RT Journal Article
SR Electronic
T1 Social Networks, Ethnicity, and Entrepreneurship
JF Journal of Human Resources
FD University of Wisconsin Press
SP 0719-10306R2
DO 10.3368/jhr.58.3.0719-10306R2
A1 William R. Kerr
A1 Martin Mandorff
YR 2021
UL http://jhr.uwpress.org/content/early/2021/01/04/jhr.58.3.0719-10306R2.abstract
AB 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.