Self-Employed Hispanics and Hispanic Wage Earners: Differences in Earnings

Abstract

The influence of employment sector on the income of Hispanics is examined using data from the 1990 U.S. Decennial Census. Human capital theory is augmented with measures of acculturation, and income equations are estimated separately for self-employed Hispanics and Hispanic wage earners. The results suggest that self-employment offers economic benefits. The importance of acculturation varies by employment sector. Decomposition of the differences in income between self-employed Hispanics and Hispanic wage earners indicates that these income differences are due more to differences in worker characteristics between the two employment sectors than to differences in rates of return to these characteristics.

The Effects of Ethnicity, Families and Culture on Entrepreneurial Experience: An Extension of Sustainable Family Business Theory

“…Researchers have suggested ethnic groups can achieve upward economic and social mobility through business ownership (Aronson, 1991;Olson et al, 2000;Sanders and Nee, 1996). Although firms are described as having four stages, this work will concentrate on founding and growth-because most ethnic businesses have not existed long enough to discuss the last two stages.…”

“…However, Bates (1997) found reliance on ethnic networks was associated with lower profits and higher failure rates. Hispanic business owners received a lower financial benefit from acculturation compared to Hispanic wage earners, primarily because using co-ethnic suppliers did not require them to increase their command of the English language (Olson et al, 2000). Fratoe (1986) emphasizes that ethnic businesses, once established, need to use bridging social capital.…”

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.…”

Economic Status of Older Asians in the United States

“…According to this theory, ethnic minorities that adopt the dominant America cultural patterns may have access to better jobs or other economic opportunity that could lead to increased earnings. Prior research based on this theory has used proficiency in the English language, duration of immigrant status, and U.S. citizenship as measures of acculturation (Hauan et al 2000;Kwon et al 2004;Olson et al 2000). Lee (1994) found a positive and significant relationship between poor English, recent immigrant status, not being a citizen and poverty level.…”