Ethnicity and Entrepreneurship in America: Toward an Explanation of Racial and Ethnic Group Variations in Self-Employment

Using data from the 1983–1987 General Social Surveys, this paper investigates the degree to which being self-employed is more prevalent within certain racial and ethnic groups than others. Those of Jewish ancestry were more likely than others to be self-employed; those from “racial” ethnic groups were generally less likely than white ethnics to be self-employed. In addition, being older, more educated, from a higher-income family, male, from the South, non-Catholic, and having a self-employed father also increased one's likelihood of being self-employed. A stratified analysis separately examining the effects among the offspring of the self-employed and others revealed that, among the progeny of the self-employed, those of African, English, Hispanic, and Asian descent were less likely to be self-employed. Among those whose fathers were not self-employed, only Jewish respondents were significantly more likely be self-employed, and those of African descent and Polish descent were less likely to be self-employed. The implications of these findings for research on ethnic entrepreneurship are discussed.