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  • Spring 2021
  • Article
  • Journal of Human Capital

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

By: Sari Pekkala Kerr and William R. Kerr
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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." Journal of Human Capital 15, no. 1 (Spring 2021): 86–127.
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About The Author

William R. Kerr

Entrepreneurial Management
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  • Will Fintechs and Central Banks Play in Emtech’s Sandbox? By: Daniel Isenberg and William R. Kerr
  • Centralization and Organization Reproduction: Ethnic Innovation in R&D Centers and Satellite Locations By: William R. Kerr
  • When Scenario Planning Fails By: Kalle Heikkinen, William R. Kerr, Mika Malin, Panu Routila and Eemil Rupponen
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