The role of Culture on Self-Employment

ERSA conference papers from European Regional Science Association

Abstract: There is an extensive literature examining the determinants of self-employment. These studies have mainly failed to account for the differences in entrepreneurial spirit across countries. This paper explores the role of culture in self-employment by exploiting variation in historical self-employment rates by country of origin of second-generation immigrants. Since second-generation immigrants are born in the U.S., all of them live under American laws and institutions. Thus, we interpret differences in self-employment rates by country of origin as evidence of the effect of culture. Using this epidemiological approach, we find that culture has quantitatively significant effects the self-employment decision.

Keywords: Self-Employment; Culture (search for similar items in EconPapers)
JEL-codes: J10 J23 J61 Z10 (search for similar items in EconPapers)
Date: 2013-11
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Related works:
Journal Article: The role of culture on self-employment (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa13p752

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