Residential Segregation and Business Outcomes: Mexican Immigrant Entrepreneurs in Los Angeles County

• In Event: 129 - Section on Latino/a Sociology Roundtables (one-hour)
  In Refereed Roundtable: Table 05. Latinos in the Labor Market

Abstract

On the basis of an original survey of 111 Mexican immigrant entrepreneurs, we explore how more or less residentially segregated neighborhoods affect the business performance of small Mexican owned businesses in various Latino/a communities of Los Angeles County. Although ethnic concentration can help disadvantaged immigrants start a business, we find that Mexican business owners do better when they branch out to a more multicultural clientele. When they do they are able to hire more workers than those who serve co-ethnics even after controlling for poverty. Additionally, our survey finds that pre-emigration business experience in family-owned businesses in Mexico has a positive effect on business performance in the U.S. Such prior, Mexico-acquired, business experience may help to explain why some immigrants opened their businesses as soon as they legalized their immigration status. Finally, those who opened their businesses immediately upon legalizing their status hired more workers than those who waited longer to open shop, all else being equal.

Authors

• Dolores Trevizo, Occidental College

• Mary J. Lopez, Occidental College