TY - JOUR AU - Fairlie,Robert AU - Woodruff,Christopher TI - Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States JF - National Bureau of Economic Research Working Paper Series VL - No. 11527 PY - 2005 Y2 - August 2005 UR - http://www.nber.org/papers/w11527 L1 - http://www.nber.org/papers/w11527.pdf N1 - Author contact info: Robert Fairlie Department of Economics University of California, Santa Cruz Santa Cruz, CA 95064 E-Mail: rfairlie@ucsc.edu Christopher Woodruff Department of Economics University of Warwick Coventry CV4 7AL UK Tel: 44 787 258 2800 Fax: 44 024 7652 3032 E-Mail: c.woodruff@warwick.ac.uk M1 - published as Robert W. Fairlie, Christopher Woodruff. "Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States ," in George J. Borjas, editor, "Mexican Immigration to the United States" University of Chicago Press (2007) M2 - featured in NBER digest on 2005-08-01 AB - Nearly a quarter of Mexico's workforce is self employed. But in the U.S. rates of self employment among Mexican Americans are only 6 percent, about half the rate among non-Latino whites. Using data from the Mexican and U.S. population census, we show that neither industrial composition nor differences in the age and education of Mexican born populations residing in Mexico and the U.S. accounts for the differences in the self employment rates in the two countries. Within the U.S., however, the data show self employment rates are much higher in ethnic enclaves. In PUMAS with a high percentage of residents of Latino origin, rates of self employment are comparable to rates among non-Latino whites. The data also indicate that the lack of English language ability and the lack of legal status among Mexican American immigrants helps account for their lower rates of self employment. ER -