2021
Working Paper
HBS Working Paper Series

Whose Job Is It Anyway? Co-Ethnic Hiring in New U.S. Ventures

By: Sari Pekkala Kerr and William R. Kerr

Format:Print
| Language:English
| Pages:46

Abstract

We explore co-ethnic hiring among new ventures using U.S. administrative data. Co-ethnic hiring is ubiquitous among immigrant groups, averaging about 22.5% and ranging from <2% to >40%. Co-ethnic hiring grows with the size of the local ethnic workforce, greater linguistic distance to English, lower cultural/genetic similarity to U.S. natives, and in harsher policy environments for immigrants. Co-ethnic hiring is remarkably persistent for ventures and for individuals. Co-ethnic hiring is associated with greater venture survival and growth when thick local ethnic employment surrounds the business. Our results are consistent with a blend of hiring due to information advantages within ethnic groups with some taste-based hiring.

Keywords

Hiring; Job Creation; E-verify; Immigration; Selection and Staffing; Ethnicity; Entrepreneurship

Citation

Kerr, Sari Pekkala, and William R. Kerr. "Whose Job Is It Anyway? Co-Ethnic Hiring in New U.S. Ventures." NBER Working Paper Series, No. 28509, February 2021. (Harvard Business School Working Paper, No. 21-101, February 2021.)