The Influence of Role Models on Immigrant Self-Employment: A Spatial Analysis for Switzerland
International Journal of Manpower, Vol. 35, No. 1/2, 2014
26 Pages Posted: 1 Aug 2012 Last revised: 9 May 2014
There are 2 versions of this paper
The Influence of Role Models on Immigrant Self-Employment: A Spatial Analysis for Switzerland
The Influence of Role Models on Immigrant Self-Employment: A Spatial Analysis for Switzerland
Date Written: August 1, 2012
Abstract
Theoretical and empirical research suggests a connection between the presence of role models and the emergence of entrepreneurs. Existing entrepreneurs may act as role models for self-employment candidates by providing successful examples. By explicitly considering the self-employment rates of the natives, which may influence locally the decisions of immigrants towards entrepreneurship, we develop a simple model that explains immigrant self-employment rates for a sample of 2,490 Swiss municipalities. In addition, we accommodate for the presence of spatial spillovers in the distribution of rates, and test a spatial autoregressive model which takes into account the average self-employment rates of immigrants living in nearby municipalities. Our evidence shows a significant (positive) effect of such spatial network effects, which are characterized by a quick distance decay, suggesting spatial spillovers at the household and social network level. Additionally, we show that local conditions and immigrant pool characteristics differ, with respect to self-employment choices, when examining separately urban and rural contexts.
Keywords: immigrants, self-employment, role models, Switzerland, spatial lag
JEL Classification: C21, J24, J61, O15, R13
Suggested Citation: Suggested Citation