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Publications
  • January 2023
  • Article
  • Journal of Human Resources

Social Networks, Ethnicity, and Entrepreneurship

By: William R. Kerr and Martin Mandorff
  • Format:Print
  • | Pages:38
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Abstract

We study the relationship between ethnicity, occupational choice, and entrepreneurship. Immigrant groups in the United States cluster in specific business sectors. For example, Koreans are 34 times more concentrated in self-employment for dry cleaning than other immigrant groups, and Gujarati-speaking Indians are 84 times more concentrated in managing motels. We quantify that smaller and more socially isolated ethnic groups display higher rates of entrepreneurial concentration. This is consistent with a model of social interactions where non-work relationships facilitate the acquisition of sector-specific skills and result in occupational stratification along ethnic lines via concentrated entrepreneurship.

Keywords

Self-employed; Occupation; Entrepreneurship; Ethnicity; Immigration; Networks

Citation

Kerr, William R., and Martin Mandorff. "Social Networks, Ethnicity, and Entrepreneurship." Journal of Human Resources 58, no. 1 (January 2023): 183–220.
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About The Author

William R. Kerr

Entrepreneurial Management
→More Publications

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More from the Authors
  • Migration Fear and Minority Crowd-Funding Success: Evidence from Kickstarter By: John (Jianqui) Bai, William R. Kerr, Chi Wan and Alptug Yorulmaz
  • Clay Ridge Capital By: Martin A. Sinozich and William R. Kerr
  • ELCA's Series A By: Anke Becker, Ray Kluender and William R. Kerr
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