Entrepreneurship and immigrant wages in US labor markets: A multi-level approach

Christel Kesler, Michael Hout

Research output: Contribution to journalArticle

Abstract

Some immigrants to the United States arrive to find co-ethnic communities that are highly entrepreneurial, and many members of their own group among their prospective employers. Other immigrants settle in far less entrepreneurial communities and have few if any co-ethnics among prospective employers. We assess whether co-ethnic entrepreneurship improves immigrant employees' wages. Previous research has focused on a small number of the largest ethnic groups in the largest cities. We study immigrants in 490 ethnic communities across the United States. Controlling for ethnicity, metropolitan area, and key individual- and community-level characteristics, we find effects of co-ethnic entrepreneurship on immigrant employees' wages that vary substantially with the characteristics of entrepreneurs and employees. Overall, immigrant employees earn lower hourly wages in more entrepreneurial communities, but they earn higher wages where co-ethnic entrepreneurs are both numerous and economically successful. Low-skilled immigrant employees earn significantly less in highly entrepreneurial communities than they otherwise would.

Original languageEnglish (US)
Pages (from-to)187-201
Number of pages15
JournalSocial Science Research
Volume39
Issue number2
DOIs
StatePublished - Mar 2010

Fingerprint

entrepreneurship
wage
labor market
immigrant
employee
community
entrepreneur
employer
low wage
large city
agglomeration area
ethnic group
ethnicity
Group

Keywords

  • Ethnic entrepreneurship
  • Immigrant socioeconomic incorporation
  • Wages

ASJC Scopus subject areas

  • Education
  • Sociology and Political Science

Cite this

Entrepreneurship and immigrant wages in US labor markets : A multi-level approach. / Kesler, Christel; Hout, Michael.

In: Social Science Research, Vol. 39, No. 2, 03.2010, p. 187-201.

Research output: Contribution to journalArticle

@article{7dc9488740d540e990961708f8e5960c,
title = "Entrepreneurship and immigrant wages in US labor markets: A multi-level approach",
abstract = "Some immigrants to the United States arrive to find co-ethnic communities that are highly entrepreneurial, and many members of their own group among their prospective employers. Other immigrants settle in far less entrepreneurial communities and have few if any co-ethnics among prospective employers. We assess whether co-ethnic entrepreneurship improves immigrant employees' wages. Previous research has focused on a small number of the largest ethnic groups in the largest cities. We study immigrants in 490 ethnic communities across the United States. Controlling for ethnicity, metropolitan area, and key individual- and community-level characteristics, we find effects of co-ethnic entrepreneurship on immigrant employees' wages that vary substantially with the characteristics of entrepreneurs and employees. Overall, immigrant employees earn lower hourly wages in more entrepreneurial communities, but they earn higher wages where co-ethnic entrepreneurs are both numerous and economically successful. Low-skilled immigrant employees earn significantly less in highly entrepreneurial communities than they otherwise would.",
keywords = "Ethnic entrepreneurship, Immigrant socioeconomic incorporation, Wages",
author = "Christel Kesler and Michael Hout",
year = "2010",
month = "3",
doi = "10.1016/j.ssresearch.2009.07.007",
language = "English (US)",
volume = "39",
pages = "187--201",
journal = "Social Science Research",
issn = "0049-089X",
publisher = "Academic Press Inc.",
number = "2",

}

TY - JOUR

T1 - Entrepreneurship and immigrant wages in US labor markets

T2 - A multi-level approach

AU - Kesler, Christel

AU - Hout, Michael

PY - 2010/3

Y1 - 2010/3

N2 - Some immigrants to the United States arrive to find co-ethnic communities that are highly entrepreneurial, and many members of their own group among their prospective employers. Other immigrants settle in far less entrepreneurial communities and have few if any co-ethnics among prospective employers. We assess whether co-ethnic entrepreneurship improves immigrant employees' wages. Previous research has focused on a small number of the largest ethnic groups in the largest cities. We study immigrants in 490 ethnic communities across the United States. Controlling for ethnicity, metropolitan area, and key individual- and community-level characteristics, we find effects of co-ethnic entrepreneurship on immigrant employees' wages that vary substantially with the characteristics of entrepreneurs and employees. Overall, immigrant employees earn lower hourly wages in more entrepreneurial communities, but they earn higher wages where co-ethnic entrepreneurs are both numerous and economically successful. Low-skilled immigrant employees earn significantly less in highly entrepreneurial communities than they otherwise would.

AB - Some immigrants to the United States arrive to find co-ethnic communities that are highly entrepreneurial, and many members of their own group among their prospective employers. Other immigrants settle in far less entrepreneurial communities and have few if any co-ethnics among prospective employers. We assess whether co-ethnic entrepreneurship improves immigrant employees' wages. Previous research has focused on a small number of the largest ethnic groups in the largest cities. We study immigrants in 490 ethnic communities across the United States. Controlling for ethnicity, metropolitan area, and key individual- and community-level characteristics, we find effects of co-ethnic entrepreneurship on immigrant employees' wages that vary substantially with the characteristics of entrepreneurs and employees. Overall, immigrant employees earn lower hourly wages in more entrepreneurial communities, but they earn higher wages where co-ethnic entrepreneurs are both numerous and economically successful. Low-skilled immigrant employees earn significantly less in highly entrepreneurial communities than they otherwise would.

KW - Ethnic entrepreneurship

KW - Immigrant socioeconomic incorporation

KW - Wages

UR - http://www.scopus.com/inward/record.url?scp=75149185357&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=75149185357&partnerID=8YFLogxK

U2 - 10.1016/j.ssresearch.2009.07.007

DO - 10.1016/j.ssresearch.2009.07.007

M3 - Article

VL - 39

SP - 187

EP - 201

JO - Social Science Research

JF - Social Science Research

SN - 0049-089X

IS - 2

ER -