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Title: How Robust is the Influence of Native Culture on Entrepreneurial Activity?

Citation Type: Miscellaneous

Publication Year: 2012

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Abstract: Entrepreneurial activity differs substantially across immigrant groups in the U.S., but relating self-employment rates in the U.S. to home country self-employment shares has provided inconclusive results. This paper offers new evidence on the robustness of the relationship between native self-employment and the self-employment decision of immigrants and their descendants. We improve over the existing literature by accounting for different proxies of entrepreneurial behavior and for determinants of self-employment in the country of origin. We find evidence of a significantly positive and robust relationship between self-employment rates of U.S. immigrants and entrepreneurial activity in their respective countries of origin. This pattern is robust and persistent across generations. In addition, the effect is increasing in GDP per capita and years since immigration. Our findings suggest that differences in self-employment across immigrants of different origin are to some degree an expression of the behavior acquired under varying economic and institutional environments.

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Authors: Lassmann, Andrea; Cusch, Christian

Publisher: Zurich

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Migration and Immigration

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