Author Abstract
We explore co-ethnic hiring among new ventures using US administrative data. Co-ethnic hiring is ubiquitous among immigrant groups, averaging about 22.5 percent and ranging from less than 2 percent to greater than 40 percent. Co-ethnic hiring grows with the size of the local ethnic workforce, greater linguistic distance to English, lower cultural/genetic similarity to US natives, and in harsher policy environments for immigrants. Co-ethnic hiring is remarkably persistent for ventures and for individuals. Co-ethnic hiring is associated with greater venture survival and growth when thick local ethnic employment surrounds the business. Our results are consistent with a blend of hiring due to information advantages within ethnic groups with some taste-based hiring.
Paper Information
- Full Working Paper Text
- Working Paper Publication Date: February 2021
- HBS Working Paper Number: 21-101
- Faculty Unit(s): Entrepreneurial Management