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Ethnic Competition or Complementarity: Which Drives (Returns to) Self-employment?

Author

Listed:
  • Joanna Nestorowicz

    (Faculty of Economic Sciences, Centre of Migration Research, University of Warsaw)

  • Joanna Tyrowicz

    (Faculty of Economic Sciences, University of Warsaw, National Bank of Poland)

Abstract

This paper explores the relationship between ethnic competition and complementarity in returns to self-employment. We use detailed individual data from the U.S. censuses. We find that while in general business competition is detrimental to profitability, higher self-employment concentrations of co-ethnics are associated with increase in returns.

Suggested Citation

  • Joanna Nestorowicz & Joanna Tyrowicz, 2013. "Ethnic Competition or Complementarity: Which Drives (Returns to) Self-employment?," Working Papers 2013-15, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2013-15
    as

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    File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP100.pdf
    File Function: First version, 2013
    Download Restriction: no
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    References listed on IDEAS

    as
    1. Berglann, Helge & Moen, Espen R. & Røed, Knut & Skogstrøm, Jens Fredrik, 2011. "Entrepreneurship: Origins and returns," Labour Economics, Elsevier, vol. 18(2), pages 180-193, April.
    2. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, April.
    3. Magnus Lofstrom, 2002. "Labor market assimilation and the self-employment decision of immigrant entrepreneurs," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 83-114.
    4. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
    5. Demsetz, Harold, 1973. "Industry Structure, Market Rivalry, and Public Policy," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 1-9, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    self-employment; ethnic entrepreneurship; competition; complementarity;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D2 - Microeconomics - - Production and Organizations
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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