Whose Job Is It Anyway? Co-Ethnic Hiring in New U.S. Ventures
March 2021
Working Paper Number:
CES-21-05
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.
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:
venture,
entrepreneur,
entrepreneurship,
minority,
ethnicity,
ethnic,
hispanic,
asian,
mexican,
immigrant,
hiring,
workforce,
immigrant entrepreneurs,
hire,
race,
native,
immigration,
migrant,
assimilation
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American Economic Association,
National Science Foundation,
National Bureau of Economic Research,
Organization for Economic Cooperation and Development,
Longitudinal Business Database,
Decennial Census,
North American Industry Classification System,
American Community Survey,
Longitudinal Employer Household Dynamics,
United States Census Bureau,
Special Sworn Status,
Core Based Statistical Area,
University of Toronto,
Census Bureau Disclosure Review Board,
Survey of Business Owners,
2010 Census,
Harvard Business School,
International Trade Research Report,
Federal Statistical Research Data Center,
Annual Survey of Entrepreneurs
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