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Reconsidering Immigrant Entrepreneurship End Notes 1 This represents only a very small sample of quotations from advocates and commentators using immigrant entrepreneurship to make a case for high levels of immigration.
2 It is also possible that immigrants are beneficial not because they are more entrepreneurial than natives, but because the businesses they start are very different from those operated by natives or because they locate in areas under-served by native entrepreneurs, such as inter-city neighborhoods. These questions are explored later in this report.
3 For the 1960, 1970, 1980, and 1990 Censuses, the study uses a 65,000-person sample drawn from the Integrated Public Use Microdata Series provided by the University of Minnesota.
4 The CPS is a sample containing 50,000 households conducted each month by the Census Bureau primarily to collect employment and labor force data.
5 All persons not born in the United States, one of its outlying territories, or of U.S. parents living abroad are considered immigrants. All persons born in the United States, including the children of illegal aliens, are considered natives. Both the Census and the CPS include some illegal aliens and a small number of persons on temporary visas, such as students, which allow them to stay for multiple years in the United States.
6 For the March 1997 and 1998 CPS, self-employment is based on whether the respondent was self-employed in the previous year. Annual self-employment income (revenue minus expenses) is also based on the pervious year. Therefore, self-employment rates and incomes from the March 1997 and 1998 CPS are for 1996 and 1997 respectively.
7 Full-time self-employment means that these individuals are self-employed at their primary jobs.
8 Full-time self-employment does not refer to hours worked per week; instead, persons are considered self-employed full-time if they are self-employed at their primary job.
9 This means that 11.2 million out of 95.1 million employed natives age 25 and over were self-employed. For immigrants, a little more than 1.4 million out of 12.7 million employed workers age 25 and over were self-employed.
10 The slightly higher self-employment rate for natives is not statistically significant at the .90 level. For the difference between all natives and all immigrants to be statistically significant, a little more than one full percentage point should separate the two values. Because the sample sizes are much smaller, for self-employment by state, metropolitan area, or for particular immigrant groups, differences would have to be much larger in order to be statistically significant.
11 Workforce is defined as employed persons 25 and over, excluding self-employed farmers.
12 This assumes a 90 percent confidence interval. That is, there is a 90 percent chance that there is an actual difference between immigrants and natives in the population.
13 The statistical significance is based on a 90 percent confidence interval. This difference is not statistically significant because of the relatively small sample size of self-employed immigrants along with the great variation in self-employment incomes among both immigrants and natives. There is also a good deal of variation between the two years. In the March 1998 CPS, the difference between immigrants and natives was only $986, considerably less than the $2,263 when the March 1997 CPS is included.
14 These figures are for persons who report self-employment income, but are not self-employed at their primary occupation. Individuals who are self-employed part-time and have zero income from their business are not identified.
15 Part-time self-employment income by year of entry is not reported because less than two percent of immigrants report part-time self-employment income. Dividing this small percentage by year of entry would make the sample to small to obtain reliable estimates of part-time self-employment income by year of entry.
16 This figure is derived by comparing the actual number of immigrant entrepreneurs in retail sales with the number who would be employed in that industry (14.4 percent) if immigrants had the same concentration as natives in retail sales.
17 This difference is not statistically significant.
18 The central cities data are based on Metropolitan Statistical Areas (MSA) or Primary Metropolitan Statistical Areas. The central cities are composed of the core urban area of each MSA or PMSA. In many cases this is larger than just the city at the center of the metro area. References Beck, Roy. 1996. The Case Against Immigration: The Moral, Economic, Social, and Environmental Reasons for Reducing U.S. Immigration Back to Traditional Levels. New York: W.W. Norton & Company.
Briggs, Vernon M., and Stephen Moore. 1994. Still the Open Door? U.S. Immigration Policy and the American Economy. Washington, DC: American University Press.
Borjas, George J. 1999. Heaven's Door: Immigration Policy and the American Economy. Princeton: Princeton University Press.
Borjas, George J., and Lynette Hilton. 1996. "Immigration and the Welfare State: Immigrant Participation in Means-tested Entitlement Programs." The Quarterly Journal of Economics. May 1996.
Borjas, George J., Richard B. Freeman, and Lawrence F. Katz. 1997. "How Much Do Immigration and Trade Affect Labor Market Outcome?" Brookings Papers on Economic Activity. Washington DC: Brookings Institution Press. Vol 1.
Bouvier, Leon F., and Lindsey Grant. 1994. How Many Americans: Population, Immigration and the Environment. San Francisco: Sierra Club Books.
Camarota, Steven A. 1999. Importing Poverty: Immigration Impact on the Size and Growth of the Poor Population in the United States. Paper # 15. Washington, DC: Center for Immigration Studies.
Clark, Rebecca L., and Jeffrey Passel. 1998. Identifying Legal and Illegal Immigrants in the Census and Current Population Surveys: A New Technique Based on the Occupational Distribution of Illegal Aliens. Washington DC: Urban Institute.
Edmonston, Barry, and James Smith Eds. 1997. The New Americans: Economic, Demographic, and Fiscal Effects of Immigration. Washington, DC: National Academy Press.
Fernandez, Marilyn, and Kwang Chung Kim. 1998. "Self-Employment Rates of Asian Immigrant Groups: An Analysis of Intragroup and Intergroup Differences." International Migration Review. Vol 32, No 3: 0654-0681.
Frost, Martin. January 22, 1999. "Where Freedom-Seekers Yearn to be Free: Halting Immigration Deprives America of Fresh Talent that Keeps it on Top." Knight Ridder/Tribune News Service.
Kotkin, Joel. September 1991. "The American Way." Inc. p. 96.
"Legal Immigration, Fiscal Year 1997." January 1999. Press Release. Immigration and Naturalization Service, Office of Policy and Planning, Statistics Branch.
Massey, Douglas S., and Kristin E. Espinosa. 1997. "What's Driving Mexico-U.S. Migration? A Theoretical Empirical, and Policy Analysis." American Journal of Sociology. 102: # 4 939-999. Muller, Thomas. 1993 Immigrants and the American City. New York: New York University Press.
Palloni, Alberto, Mike Spittel, and Miguel Ceballos. 1999. Using Kin Data to Falsify Social Networking Hypotheses in Migration. Paper presented at the annual meeting of the Population Association of America.
Razin, Eran, and Ivan Light. 1998. "Ethnic Entrepreneurs in America's Largest Cities." Urban Affairs Review Vol 33, No 3: 332-360.
Sanders, Jimy M. and Victor Nee. 1996. "Immigrant Self-Employment: Family as Social Capital and the Value of Human Capital" American Sociological Review. Vol. 61 April 231-249.
Shaughnessy, Rick. January 31, 1995. "Many Immigrants Demonstrate A Flair for Creating Jobs." San Diego Union-Tribune.
Simon, Julian L. 1989. The Economic Consequences of Immigration. Cambridge MA: Basil Blackwell, Inc.
Spencer, Gregory. 1996. "Population Projection of the United States..." Current Population Projections. Washington, DC: GPO. p. 25-1130.
Unz, Ron K. 1994. "Sinking our State; Immigration." Reason. Vol. 26, No. 6. p. 46.
Van Skambrouck, Paul. August 27, 1999. "Give Me Your Huddled Masses ... er Geniuses." Christian Science Monitor. USA section, p. 3.
Wattenberg, Ben J., and Karl Zinsmeister. December 1989. The Comparative Advantage of the First Universal Nation. Discussion Paper for American Enterprise Institute Annual Policy Conference.
Warren, Robert. 1999. Unauthorized Immigrants Residing in the United States: Estimating the Populations, Components of Change, and Trends, by Broad Area of Origin, 1987 to 1997. Paper presented at the annual meeting of the Population Association of America.
Yuengert, Andrew M. 1995 "Testing Hypotheses of Immigrant Self-Employment." Journal of Human Resources. Vol. 30, No1. p. 194-204.
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