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Mexican-American Self-Employment

Mexican-American Self-Employment: A Dynamic Analysis of Business Ownership

Magnus Lofstrom, Chunbei Wang

First published 2009

This paper analyzes causes of the low self-employment rate among Mexican-Americans by studying self-employment entry and exits. Importantly, the authors analyze self-employment by recognizing heterogeneity in business ownership across industries and show that a classification of firms by human and financial capital “intensiveness”, or entry barriers, is effective in explaining differences in entrepreneurship across ethnic groups.

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