Immigration and Ethnic Entrepreneurship: A Comparative Study in the United States

Using Singer's typology of different types of immigration gateways, this study mainly addresses how metropolitan area conditions impact ethnic labor force entrepreneurial choices across ethnicity and gender, within the contexts of different types of immigration gateways. Employing the 5 percent 2000 Integrated Public Usable Microdata Samples and a multilevel regression strategy, this study demonstrates that different types of immigration gateways have distinctive impacts on ethnic entrepreneurship. After controlling for both personal‐ and metropolitan‐level characteristics, it is found that whites and blacks are more likely to own businesses in newer immigration gateways, while Hispanics and Asians are more likely to do so in the more established gateways. In addition, differences as to the interaction effects of gender and regional labor markets are the most significant for blacks and Asians. Such interaction effects reshape gender differences in business ownership across ethnic groups.     

Quality of Life and the Migration of the College‐Educated: A Life‐Course Approach

ABSTRACT This paper examines how the college‐educated population—segmented into selective demographic groups, from young adults to the elderly—differentially values quality‐of‐life (QOL) indicators of metropolitan areas in the United States. Using data from the 2000 Census and the 1997 Places Rated Almanac, out‐migration patterns are shown to depend jointly upon stage in the life course, the spatial‐demographic setting, and QOL characteristics. An abundance of cultural and recreational amenities lowers out‐migration rates of young college‐educated. For the older college‐educated population, the revealed preferences shift toward concerns for safety and a strong preference for milder climates. The study also finds significantly lower out‐migration rates for metropolitan areas with growing human capital. In light of shifting age distributions and rising educational attainment levels, the results have important implications for the emergence of new migration patterns and the concentration of human capital.     

Local Labor Market Adjustment to Immigration: The Roles of Participation and the Short Run

ABSTRACT While previous research has generally found that immigration raises unemployment for natives, effects are often more muted than expected. Anticipated out‐migration responses have been similarly difficult to discern. However, these findings may be byproducts of the long‐run nature of most inquiries, which furthermore do not account for changes in natives’ labor force participation. In response, this study evaluates the impact of the arrival of low‐skilled immigrants on low‐skilled natives in urban areas over a five year period. Initial static results from the Census Basic Monthly Survey clearly indicate that immigrants have a significant negative impact on natives’ labor force participation. Building upon these static panel results, characteristics of immigrants’ destination choices are examined along with the ensuing adjustment process through dynamic analyses of local markets. Surges of immigrants significantly reduce the labor force participation of low‐skilled natives, emphasizing this often neglected channel for labor market adjustment. Previous work may thus understate the true impact of immigrants on local labor markets by focusing on the longer term and ignoring adjustments through participation.     

Disparities and Divided Growth: Ethnic Entrepreneurship in the Greater Los Angeles Area, 1980–2015

This study employs a multilevel research design to examine business ownership across ethnic groups in the greater Los Angeles area. It finds significant divide between white and non‐white businesses along the labor market hierarchy. The entrepreneurial environment, ethnic residential communities, ethnic business spatial clustering, ethnic concentration in particular niche sectors, and ethnic diversity in local areas are all related to business ownership and disparities across ethnic groups. The results suggest that ethnically diverse neighborhoods and co‐ethnic business communities could provide a conducive institutional environment and resources for minority businesses to start. However, in contrast to white owned businesses, ethnic minority businesses' concentration in the low‐end and easy‐entry sectors may reinforce their disadvantages and hinder upward economic mobility. This study provides policy implications for community regional development through entrepreneurship especially when race and ethnicity are concerned.     

Unemployment Duration in Non‐Metropolitan Labor Markets

Non‐metropolitan areas of the U.S have experienced significant structural economic changes in recent decades. These changes have raised concerns that some non‐metropolitan workers may face significant costs to employment displacements associated with economic adjustments. This paper explores the roles that linkages to metropolitan labor markets, area labor market conditions, and individual attributes play in determining the rates of exit from unemployment to employment among non‐metropolitan area residents. Adjacency to a metropolitan area is found to significantly increase transition rates from unemployment to employment among displaced non‐metropolitan workers, but local economic conditions are found to have relatively weak or insignificant effects on transition rates. Also, lack of post‐high school education and minority status both significantly reduce rates of exit from unemployment in non‐metropolitan areas following employmentdisplacement.     

Race,Place, and the Persisting Income Divide in the U.S. Southeast, 2000–2014

Despite economic growth since the recession, the gap between the richest and the poorest segments of the population remains one of the most pressing concerns of contemporary America. This paper uses IR‐95/20, IR‐80/20, and IR‐65/35 ratios to measure the income divides between the richest and the poorest segments in the mid‐to‐large‐sized metropolises of the U.S. Southeast, their variation across ethnicities, and their association with metropolitan level attributes such as diversity, segregation, socio‐economic, and other built‐environment, and labor characteristics. The income divide ratios serve as the dependent variables whereas principal components along with state‐dummy variables serve as the explanatory variables in regressions analyses. The metropolises that are large, diverse, and better educated are the most income‐divided whereas those with lower educated people are less divided. Metropolises with larger shares of their labor engaged in primary sectors of economy have higher income divides; this observation also holds true for African Americans and Hispanics. Metropolises that gained in intermixing during 2000–2014 are associated with a lower income divide and vice versa.     

Change in the Concentration of Employment in Computer Services: Spatial Estimation at the U.S. Metro County Level

ABSTRACT This article models the concentration of computer services activity across the U.S. with factors that incorporate spatial relationships. Specifically, we enhance the standard home‐area study with an analysis that allows conditions in neighboring counties to affect the concentration of employment in the home county. We use county‐level data for metropolitan areas between 1990 and 1997. To measure change in employment concentration, we use the change in location quotients for SIC 737, which captures employment concentration changes caused by both the number of firms and the scale of their activity relative to the national average. After controlling for local demand for computer services, our results support the importance of the presence of a qualified labor supply, interindustry linkages, proximity to a major airport, and spatial processes in explaining changes in computer services employment concentration, finding little support for the influence of cost factors. Our enhanced model reveals interjurisdictional relationships among these metro counties that could not be captured with standard estimates by state, metropolitan statistical area (MSA), or county. Using counties within MSAs, therefore, provides more general results than case studies but still allows measurement of local interactions.     

Cities,Skills, and Inequality

ABSTRACT The surge in U.S. wage inequality over the past several decades is now commonly attributed to an increase in the returns paid to skill. Although theories differ with respect to why, specifically, this increase has come about, many agree that it is strongly tied to the increase in the relative supply of skilled (i.e., highly educated) workers in the U.S. labor market. A greater supply of skilled labor, for example, may have induced skill‐biased technological change or generated greater stratification of workers by skill across firms or jobs. Given that metropolitan areas in the U.S. have long possessed more educated populations than non‐metropolitan areas, these theories suggest that the rise in both the returns to skill and wage inequality should have been particularly pronounced in cities. Evidence from the U.S. Census over the period of 1950 to 1990 supports both implications.     

The Source of Metropolitan Growth: The Role of Commuting

Over the past few years, a large number of studies have focused on whether population or employment is critical to the source of metropolitan growth. However, only few attempts have so far been made to additionally consider the suburbanization stage and pattern of commuting, which may both enable us to explore this “chicken–egg” issue a little further. The purpose of this paper is to compare dwelling‐based (housing) with job‐based (job) employment to evaluate the net commuting. The Taipei metropolitan area, for example, now lies at the initial suburbanization stage with only population decentralization and massive in‐commuting to the central city. The estimation results based on a co‐integration system reveal that the central‐city employment can be regarded as an engine of this metropolitan economy. Besides, we also find that dwelling‐based employment distorts the causality between population and employment, especially from the variance‐decomposition accounts. Therefore, the importance of commuting to investigating the evolution of metropolitan economy should not be overlooked.     

Immigrants Doing Business in a Mid‐sized Canadian City: Challenges,Opportunities, and Local Strategies in Kelowna,British Columbia

Lacking a tradition of settling immigrants and the appropriate infrastructure to integrate them, small‐ and medium‐sized cities often face the challenge of attracting and retaining immigrants. Using a mixed methods approach, this study compares the experiences of immigrant and non‐immigrant entrepreneurs in a mid‐sized Canadian city, Kelowna, British Columbia. A survey reveals different experiences between these two groups, with immigrants facing more challenges. In the absence of institutionally complete communities or strong ethnic economies, immigrants do not rely extensively on their own community resources, an element considered instrumental for immigrant business development in large cities. Compared to non‐immigrants, immigrant entrepreneurs have a more optimistic outlook on doing business in Kelowna; this is encouraging for a city trying hard to attract immigrant investment. Key informants recommended transforming the city into a more welcoming community, establishing appropriate support infrastructure, and removing potential institutional offsets. This paper adds new theoretical insights to the literature on immigrant entrepreneurship; all socio‐cultural, political‐institutional, and economic‐structural considerations are embedded in geography. The findings also have implications for growth strategies in small‐ and medium‐sized cities.     

An analysis of employment patterns of domestic migrants and immigrants in a Rustbelt city: A study of Buffalo-Niagara Falls

This study evaluates employment patterns of domestic migrants and immigrants and also explores the role of ethnic niching for Asian and African American recent arrivals in the context of local structural transformation (e.g., the shift from manufacturing to services). Employment patterns are examined for industry-occupation groups using the 5% Public Use Micro Sample of the 2000 U.S. Decennial Census and the 2006–2010 of the American Community Survey. The study area is a Rustbelt city that has suffered from population loss: the Buffalo-Niagara Falls MSA. Location quotients and shift-share analysis are used to classify employment shifts into four industry-occupation groups: growing, transforming, declining, and emerging. Logistic regressions are estimated to identify the role of various demographic factors and ethnic niches on the employment of recent arrivals in the above four industry-occupation groups. The results show that the employment of recent arrivals vary by migration status and ethnicity. The role of ethnic niches is especially important in declining industry-occupation groups. The analytical framework can be used to understand where and how migrants, both domestic and immigrants, find work. Future studies can focus on the pros and cons of ethnic niching (e.g., barriers to suitable jobs, ethnic entrepreneurship through niche experience) as structural transformation continues across U.S. regions, especially with new technologies.     

What drives the labor share of income in South Korea? A regional analysis

This study takes a regional approach to analyzing what drives labor's share of income for South Korea over 2000–2014. First, we document empirically that changes in the labor share within a region are the dominant component of the change in the aggregate labor share of national income. To study the dynamic determinants of the labor share of income at the regional level, a panel vector autoregression (PVAR) model is estimated to examine how the regional labor share responds to innovations in an array of variables suggested by theoretical models. Consistent with theory, we confirm that technology, capital intensity and market concentration are the key variables explaining the labor share dynamics. Furthermore, we analyze the effects of trade openness and R&D expenditures on the regional labor share. Interestingly, we find that the labor share shows a different pattern of responses to the identified shocks depending upon the type of regions, that is, whether it is in the metropolitan or provincial areas. We also discuss the implications of our results for both theory and policy.     

Income Divergence between Mexican States in the 1990s: The Role of Skill Premium

ABSTRACT During the period 1940–1985 the variance of average incomes across Mexican states fell by 60 percent. Beginning in 1985, however, and coinciding with the adoption of trade liberalization policies and other market‐oriented reforms, state incomes began to diverge. Using microdata from the 1990 and 2000 Mexican Population Censuses, this study decomposes the recent divergence into components due to economy‐wide changes in skill prices and components due to state‐specific changes in the composition of workers. The study finds that the rise in the education premium hindered the progress of poor states and raised the variance of average state wages and labor earnings. However, educational attainment mostly compensated for this income‐widening effect. State‐level regressions reveal that the initial level of education, size of the agricultural sector, and distance from the U.S. border were important factors, while public infrastructure was not. While the border states clearly benefited from increased trade and opening of the economy, I find no evidence that skill demand or the immigration of highly educated workers particularly favored these states.     

Effects of the Housing Boom and Bust on U.S. Metro Employment

This paper examines the effects of the housing boom of the early 2000s on unemployment in U.S. metropolitan areas. A region's share of housing units built between 2000 and 2006 has no effect on unemployment prior to the start of the Great Recession, but the extent of a region's housing boom increases unemployment in over one‐half of the months analyzed during and immediately following it. Regression results based on a cluster analysis of metropolitan areas indicate that regions characterized by high growth rates of construction, retail, and hospitality employment during the early 2000s were hit particularly hard by the recession.     

Heterogeneity in the local employment multipliers in the United States

Recent studies have found evidence of a local employment multiplier’s effect. For the most part, these studies provide an average estimate for all labor markets. In this paper, we examine how the average local employment multiplier, the effect of an exogenous increase in employment in the tradable sector on total employment, depends on the characteristics of the local labor market. Specifically, we estimate the average multipliers for coastal, noncoastal, large, and small metropolitan statistical areas (MSAs) across different time periods using the data of 333 US MSAs. Overall, we find a reduced form of local employment multiplier ranging from 1.38 to 2.24, which is within the range of typically estimated local employment multipliers. In addition, the characteristics of the local labor market matter. The local multipliers appear larger in noncoastal and large MSAs. For small and coastal metros, the multiplier is closer to 1.5 than to 2.0 while in the case of large and noncoastal metros, it is closer to 2.0 than to 1.5. The local multipliers are also sensitive to the time period considered.     

Servicing Our Economy: Producer Service Location and Government Procurement 2004–2010 in the Washington DC Metropolitan Area

Harrington and Campbell (1997) previously illuminated the pattern of producer services' suburbanization in the Washington, D.C., metropolitan area between 1970 and 1992. Their results showed producer services growing at a faster rate at locations farther from the central city. We revisit the topic utilizing data from 2004 to 2010, assessing not only changes in the distribution of producer services since their work, but also the impact of massive increases in defense spending on producer services' growth throughout the first decade of the twenty‐first century. Multivariate linear regression is used to estimate per capita growth of producer services employment using six independent variables. Our results reveal producer services employment during the time period has grown significantly more quickly in the urban D.C. core than the outer suburbs, contrary to Harrington and Campbell's research. Additionally, we find per capita producer services employment is self‐limiting over the study period: locations with more producer services employment in 2004 experienced significantly less producer services growth over the period. We find federal procurement has no correlation on producer services overall, with limited effects on some subsectors. Analyzing a select group of producer services subsectors revealed that no sectors followed the overall model exactly, suggesting that targeting producer services for growth must be done carefully. None of our models show employment diversity to be a factor in differentiating economic growth at the intra‐metropolitan level.     

New Immigrants Seeking New Places: The Role of Policy Changes in the Regional Distribution of New Immigrants to Canada

Canada, the U.S., and Australia have recently experienced an increased regional dispersion of entering immigrants. American research suggests that a mixture of economic push factors (away from states like California) and pull factors (toward states with growth of low‐wage jobs) and changing government policies and regulations contributed to the development of the New Gateways. Very few studies have been conducted to determine why the regional dispersion of entering immigrants occurred in Canada. This paper assesses the extent to which changes in immigration selection programs, notably, the Provincial Nominee Programs, contributed to the regional dispersion of entering immigrants. Using data from immigrant landing records, this study shows that different factors accounted for changes in the share of immigrants settling in different destinations. Changes in immigration selection programs played the primary role in the increasing numbers going to Saskatchewan and Manitoba, although improving economic conditions may have played an indirect role. Shifts in immigrant source regions were an important factor in the decrease in immigration to Toronto and in the increase to Montréal. Economic conditions likely played a significant role in the changes in the shares of new immigrants going to Toronto, Montréal, Calgary, and Edmonton.     

Moonlighting in a High Growth Economy: Evidence from U.S. State‐Level Data

Despite the prevalence of multiple jobholding, there is relatively little research into its causes. Existing research has tested the predictions of standard labor models with micro data. Yet, there has been virtually no research into the relationship between moonlighting and structural differences in regional labor markets such as wages and employment growth. In this manner, this study examines the large differences in multiple jobholding rates across U.S. states. The findings indicate that multiple jobholding acts as a short‐term shock absorber to cyclical changes. However, in the long‐term, these effects dissipate, indicating that moonlighting plays a similar role as do changes in unemployment and labor‐force participation to regional labor market shocks. Conversely, multiple jobholding rates are inversely related to average weekly earnings. Thus, job growth accompanied by real wage (and productivity) growth may result in a decline in multiple jobholding, further exacerbating potential labor shortages. Other key factors found to influence multiple jobholding include occupational structure and education.     

Note: Paid Informal Work in Deprived Urban Neighborhoods: Exploitative Employment or Cooperative Self‐Help?

The aim of this paper is to challenge the characterization of paid informal work as a form of employment based on exploitative relations that should be eradicated. Using empirical evidence gathered through structured interviews with 511 households in deprived and affluent neighborhoods in British cities, this paper reveals that paid informal work in deprived areas is mostly conducted for kin, neighbors, and friends for co‐operative reasons and is thus more like unpaid community exchange in the private sphere than exploitative employment. In consequence, the challenge for social and labor market policy is argued to be not to try to eradicate such work but to harness it in these deprived urban neighborhoods.     

Unemployment,Growth, and Trade Unions

This paper develops a two‐sector endogenous growth model with a dual labor market caused by the operation of trade unions. Trade unions strive for the extraction of rents from the growth generating imperfectly competitive primary sector. This union behavior results in a non‐competitive wage differential between the primary and secondary (perfectly competitive) sector. How the relationship between growth and unemployment depends on the institutional details of the labor market is analyzed. In general, growth and unemployment are intimately related for two reasons. Unemployment affects the scale of operation of the economy and thereby the growth rate. Growth affects inter‐temporal decisions of workers about where to allocate on the labor market once they are laid off, and thereby it affects equilibrium unemployment.