Magnus Lofstrom, Chunbei Wang
First published September 2007
This article examines causes of the low self-employment rates among Mexican-Hispanics by studying self-employment entry. The data show that Mexican-Hispanics are less likely to be self-employed or enter self-employment, relative to non-Hispanic whites. Also, the lower self-employment entry rates among Mexican-Hispanics are due to lower entry rates into business ownership of firms in relatively high-barrier industries. In fact, Hispanics are more likely to start up a business in a low-barrier industry than whites.