Whose Job Is It Anyway? Coethnic Hiring in New US Ventures

Kerr, Sari Pekkala; Kerr, William R.

doi:10.1086/713996

Cited by 6 publications

(2 citation statements)

References 119 publications

(93 reference statements)

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“…9 Another possible explanation is that immigrant-owned franchises served different parts of Seattle than other franchises. Many immigrant-owned firms tend to have a close connection to the communities that they serve, relying on co-ethnics in the local community as patrons and workers (Dabic ́et al, 2020;Kerr & Kerr, 2021). A devoted consumer base and labor supply may have given immigrant-owned franchises the security to withstand the higher minimum wage.…”

Section: Immigrant-owned Franchises and Seattle's Minimum Wage Ordinancementioning

confidence: 99%

How Do Employers Belonging to Marginalized Communities Respond to Minimum Wage Increases? The Case of Immigrant-Owned Businesses in Seattle

Somashekhar

Buszkiewicz

Allard

et al. 2022

Economic Development Quarterly

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Minimum wage opponents often argue that businesses owned by marginalized communities, which include woman-owned, Black-owned, and immigrant-owned businesses, are exceptionally vulnerable to minimum wage increases. Little research has investigated this claim. Using a unique survey of Seattle businesses that includes owners’ nativity status and was administered while the city began to phase in its $15 minimum wage ordinance, the authors find that immigrant-owned businesses respond to the higher minimum wage in ways that largely conform to the responses of other businesses. Nevertheless, immigrant-owned franchises are less likely than other franchises to fire employees, reduce employees’ hours, or lower the wages of employees earning more than $15 per hour. Evidence suggests that immigrant franchisees have a lower likelihood of passing the increased labor costs onto employees because they use fewer employees and rely more heavily on family labor compared to other franchisees. The authors’ findings suggest that firms owned by marginalized and nonmarginalized groups respond to municipal-level minimum wage increases in comparable ways. Nevertheless, marginalized status may matter more in certain sectors of the economy than in others.

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Section: Immigrant-owned Franchises and Seattle's Minimum Wage Ordinancementioning

confidence: 99%

How Do Employers Belonging to Marginalized Communities Respond to Minimum Wage Increases? The Case of Immigrant-Owned Businesses in Seattle

Somashekhar

Buszkiewicz

Allard

et al. 2022

Economic Development Quarterly

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“…Elliot (2001 found that newly arrived Latino immigrants in the US are more likely than US-born Latinos or blacks to rely on personal contacts. Studies also report a high reliance on coethnic job-referral networks among immigrant workers (Dustmann et al 2016;Goel and Lang 2019;Åslund, Hensvik and Skans 2014) and that immigrant managers often recruitment employees from their own country of origin (Kerr and Kerr 2021;Åslund et al 2014). In contrast, intermarriage with natives may provide immigrants with better access to job-relevant networks that enable employment in mainstream workplaces (Strömgren et al 2014).…”

Section: Introductionmentioning

confidence: 99%

Entering the Mainstream Economy? Workplace Segregation and Immigrant Assimilation

Lillehagen¹,

Hermansen²

2022

Preprint

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Why do immigrants often concentrate in low-wage workplaces with high shares of minority employees? Is workplace segregation relative to natives declining among native-born descendants of immigrants—who often achieve higher acculturation and socioeconomic progress—compared to the immigrant generation? Using rich linked employer-employee administrative data from Norway, we show that, on average, 37% and 24%, respectively, of immigrants’ and their descendants’ coworkers have immigrant background compared to 9% among natives. For economic segregation, the percentile rank of coworkers’ salary is, on average, 36, 50, and 52 for immigrants, descendants, and natives, respectively. Using information on characteristics of employees, workplaces, and residential neighborhoods, a formal decomposition shows that these factors collectively explain 33-68% and 78-80% of ethnic and socioeconomic workplace segregation, respectively, for both immigrants and their descendants. Within both generations, workers’ education and labor market attainments, industry of employment, and share of immigrant neighbors contribute most to workplace segregation relative to natives. Overall, our findings reveal a sharp decline in workplace segregation across immigrant generations, where the second generation gain improved access to workplaces in the mainstream economy.

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Immigrant Entrepreneurs

Lofstrom

Wang

2022

Handbook of Labor, Human Resources and Population Economics

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Whose Job Is It Anyway? Coethnic Hiring in New US Ventures

Cited by 6 publications

References 119 publications

How Do Employers Belonging to Marginalized Communities Respond to Minimum Wage Increases? The Case of Immigrant-Owned Businesses in Seattle

How Do Employers Belonging to Marginalized Communities Respond to Minimum Wage Increases? The Case of Immigrant-Owned Businesses in Seattle

Entering the Mainstream Economy? Workplace Segregation and Immigrant Assimilation

Immigrant Entrepreneurs

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