| Abstract: | Self‐employment and work in sectors with high concentrations of owners and workers of the same ethnicity have been identified as potential routes of economic success for immigrants. This study uses 1990 census data to assess the effects of self‐employment, ethnic employment, and their interaction on the odds of being at work, on number of hours worked, and on earnings of individual members of several representative groups. These groups include Cubans in Miami; African Americans, Puerto Ricans, Koreans, Chinese and Dominicans in New York; and African Americans, Koreans, Chinese, Mexicans and Salvadorans in Los Angeles. Work in ethnic sectors of the economy has no consistent effects, although work in their niche in the public sector offers greater rewards than any other type of employment for African Americans and Puerto Ricans. Findings are mixed for self‐employment, and its estimated effect on earnings depends on model specification. We conclude that the self‐employed work longer hours but in many cases at lower hourly rates. The effects of self‐employment are the same in ethnic sectors as in the mainstream economy. |
