OLS Estimations at Metropolitan Level for Size
| Baseline MSA-Level Estimation with Local Size Measure [OVER1] (1) | Including Control for Expected Overage from Simulations (2) | Including Control for Expected Overage from Simulations and Ethnicity Fixed Effects (3) | |
|---|---|---|---|
| Panel A: Baseline Estimation without Controls | |||
| Inverse of log ethnic group size (small groups have larger values) | 0.420*** | 0.209*** | 0.115*** |
| (0.023) | (0.034) | (0.026) | |
| Isolation of ethnic group (national measure) | 0.063** | 0.066** | |
| (0.026) | (0.027) | ||
| MSA FE | Yes | Yes | Yes |
| Ethnic group FE | Yes | ||
| Adjusted R-squared value | 0.175 | 0.209 | 0.247 |
| Observations | 6,649 | 6,649 | 6,649 |
| Panel B: Including Controls for Ethnic Group’s Traits | |||
| Inverse of log ethnic group size (small groups have larger values) | 0.384*** | 0.165*** | 0.115*** |
| (0.020) | (0.026) | (0.026) | |
| Isolation of ethnic group (national measure) | 0.087*** | 0.095*** | |
| (0.023) | (0.023) | ||
| MSA FE | Yes | Yes | Yes |
| Ethnic group FE | Yes | ||
| Adjusted R-squared value | 0.193 | 0.228 | 0.247 |
| Observations | 6,649 | 6,649 | 6,649 |
Notes: See Table 1. Estimations describe the OLS panel relationship between industry concentration for ethnic entrepreneurship and ethnic group size at a metropolitan level. The sample includes metropolitan areas for an ethnicity where self-employment activity is observed. Regressions are weighted by log ethnic group counts in the metropolitan area and report standard errors clustered by ethnic group. Variables are winsorized at their 10 percent / 90 percent values to guard against outliers. Column 2 adds a control for the expected overage level for an ethnicity and metropolitan area based on 100 Monte Carlo simulations with the number of observations in the sample. Column 3 adds a fixed effect for ethnicities.