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The Influence of Role Models on Immigrant Self-Employment: A Spatial Analysis for Switzerland

Author

Listed:
  • Giuliano Guerra

    (Institute for Economic Research (IRE), University of Lugano, Switzerland)

  • Roberto Patuelli

    (Department of Economics, University of Bologna, Italy; The Rimini Centre for Economic Analysis (RCEA), Italy)

Abstract

Theoretical and empirical research suggests a connection between the presence of role models and the emergence of entrepreneurs. Existing entrepreneurs may act as role models for self-employment candidates by providing successful examples. By explicitly considering the self-employment rates of the natives, which may influence locally the decisions of immigrants towards entrepreneurship, we develop a simple model that explains immigrant self-employment rates for a sample of 2,490 Swiss municipalities. In addition, we accommodate for the presence of spatial spillovers in the distribution of rates, and test a spatial autoregressive model which takes into account the average self-employment rates of immigrants living in nearby municipalities. Our evidence shows a significant (positive) effect of such spatial network effects, which are characterized by a quick distance decay, suggesting spatial spillovers at the household and social network level. Additionally, we show that local conditions and immigrant pool characteristics differ, with respect to self-employment choices, when examining separately urban and rural contexts.

Suggested Citation

  • Giuliano Guerra & Roberto Patuelli, 2010. "The Influence of Role Models on Immigrant Self-Employment: A Spatial Analysis for Switzerland," Working Paper series 29_10, Rimini Centre for Economic Analysis, revised Jan 2012.
    • Handle: RePEc:rim:rimwps:29_10
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    Cited by:

    1. Ratan J. S. Dheer, 2018. "Entrepreneurship by immigrants: a review of existing literature and directions for future research," International Entrepreneurship and Management Journal, Springer, vol. 14(3), pages 555-614, September.
    2. Annie Tubadji & Peter Nijkamp, 2015. "Cultural Gravity Effects among Migrants: A Comparative Analysis of the EU15," Economic Geography, Taylor & Francis Journals, vol. 91(3), pages 343-380, July.
    3. Nathan, Max, 2013. "The Wider Economic Impacts of High-Skilled Migrants: A Survey of the Literature," IZA Discussion Papers 7653, Institute of Labor Economics (IZA).
    4. S M Kabir & Ahasanul Haque & Abdullah Sarwar, 2017. "Factors Affecting the Intention to Become an Entrepreneur: A Study from Bangladeshi Business Graduates Perspective," Post-Print hal-01580857, HAL.
    5. Max Nathan, 2014. "The wider economic impacts of high-skilled migrants: a survey of the literature for receiving countries," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-20, December.
    6. McGinnity, Frances & Quinn, Emma & Kingston, Gillian & O'Connell, Philip J., 2012. "Annual Monitoring Report on Integration 2011," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT216.
    7. Dr Max Nathan, 2013. "The wider economic impacts of high-skilled migrants: a survey of the literature," National Institute of Economic and Social Research (NIESR) Discussion Papers 413, National Institute of Economic and Social Research.
    8. María José Rodríguez-Gutiérrez & Isidoro Romero & Zhikun Yu, 2020. "Guanxi and risk-taking propensity in Chinese immigrants’ businesses," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 305-325, March.
    9. Nathan, Max, 2014. "The wider economic impacts of high-skilled migrants: a survey of the literature for receiving countries," LSE Research Online Documents on Economics 57370, London School of Economics and Political Science, LSE Library.
    10. Ken Clark & Stephen Drinkwater & Catherine Robinson, 2017. "Self-employment amongst migrant groups: new evidence from England and Wales," Small Business Economics, Springer, vol. 48(4), pages 1047-1069, April.
    11. Annie Tubadji & Peter Nijkamp, 2013. "Cultural Distance and Gravity Effects among Migrants," ERSA conference papers ersa13p484, European Regional Science Association.

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    More about this item

    Keywords

    immigrants; self-employment; role models; Switzerland; spatial lag;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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