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,
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American Economic Association,
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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,
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University of Toronto,
Census Bureau Disclosure Review Board,
Survey of Business Owners,
2010 Census,
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International Trade Research Report,
Federal Statistical Research Data Center,
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