Mexican Immigrant Self‐Employment Along the U.S.‐Mexico Border: An Analysis of 2000 Census Data^*

Abstract

Objective. This study explores the entrepreneurial tendencies of Mexican immigrants in metropolitan statistical areas (MSAs) on the U.S. side of the Mexican border vis‐à‐vis the U.S. interior. Methods. Using 2000 Census data available in the 5% Integrated Public Use Microdata Series, we empirically analyze the self‐employment rates and earnings of Mexican immigrants residing in U.S. cities near Mexico versus those in nonborder MSAs. Results. Our findings indicate that Mexican immigrants in MSAs along the U.S.‐Mexico border have significantly higher self‐employment rates (but lower earnings) than their counterparts in the rest of the United States and non‐Hispanic whites in border cities. Explanations for these findings include the existence of trade opportunities in U.S. border cities as well as intense labor market competition that crowds a greater share of immigrants into self‐employment. Conclusion. Immigration reform that curtails the immigration flow from Mexico might hinder small business formation and economic development on the U.S. side of the Mexican border.

Entrepreneurship, ethnicity and local contexts: Hispanic entrepreneurs in three U.S. southern metropolitan areas

“…A recent study demonstrates that transnational economic activities by Latino immigrant entrepreneurs play a key role in transforming local retail landscape in American's fifth largest city Phoenix, AZ (Oberle 2006). Similarly, Mora and Dávila (2006) demonstrate that entrepreneurship rate among Mexican immigrants in the US-Mexico border region is much higher compared to other areas in the US.…”

Minority Self-Employment in the United States and the Impact of Affirmative Action Programs

“…4 The representation of minorities in particular among the ownership of firms in construction is well below their representation in the population as a whole. According to the 2002 Economic Census Survey of Business Owners, of the 2,770,888 firms in construction, 2.4% were owned by African Americans; 7.0% by Hispanics; 3 For a discussions of Hispanic self-employment and entrepreneurship see Robles and Cordero-Guzmán (2007); Olson et al (2000); Mora and Da´vila (2006) and Zuiker et al (2003). In a recent review Robles and CorderoGuzmán (2007) suggest that educational attainment rates, individual or family personal wealth, customer demographics, age of enterprise, age of owner, and particularly access to financial capital are significant variables in explaining Latino self-employment rates and business ownership success and failure.…”

The Future of Entrepreneurship in Latin America

“…Mexican entrepreneurs in the US have an advantage in serving Mexican consumers living in the US. They know their customers (Mora and Dávila 2006).…”

“…However, Mexican entrepreneurs in the US do not earn as much as their counterparts who are non-immigrants (Mora and Dávila 2006). In the US Mexican female entrepreneurs tend to be older, less educated, and have more dependent children than black and non-Hispanic white entrepreneurs (Robles 2004).…”