Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35415
Authors: 
Lofstrom, Magnus
Bates, Timothy
Year of Publication: 
2009
Series/Report no.: 
IZA discussion papers 3997
Abstract: 
We utilize individual panel data from the 1996 and 2001 Survey of Income and Program Participation (SIPP) to analyze the relative success of self-employed female Hispanics. To allow for a meaningful comparison of earnings between self-employed and wage/salary employed women, we generate different earnings measures addressing the role of business equity. We compare earnings of Hispanic female entrepreneurs to both Latina wage/salary workers and to self-employed female non-Hispanic whites. Latina entrepreneurs are observed to have lower mean earnings than both white female entrepreneurs and Latina employees. However, our findings indicate that Latina entrepreneurs often do well, once differences in mean observable characteristics, such as education, are taken into account. Self-employed Latinas are estimated to earn more than observationally similar nonminority white female entrepreneurs and slightly less than observationally similar Latinas in wage/salary work.
Subjects: 
Self-employment
entrepreneurship
female
minority
Hispanic
Latina
JEL: 
J15
J16
J31
L26
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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