Differences in the Process of Self-Employment among Whites, Blacks, and Asians: The Case of Scientists and Engineers

Abstract

This study examines the process of self-employment among scientists and engineers from 1982 to 1989. I use data from the Surveys of the Natural and Social Scientists and Engineers to investigate the effects of race, nativity, and recency of arrival on the “entry to” and “persistence in” self-employment. The analysis shows that native-born Asians and blacks with paid employment are less likely than comparable native-born whites to enter self-employment, while the opposite is true for post-1965 white immigrants. Among the self-employed, compared to native-born whites, post-1965 white immigrants have a higher tendency to remain in self-employment, and blacks are less likely to persist in self-employment. There is no significant difference between Asian immigrants and native-born whites in the likelihood of entering or staying in self-employment. The results are inconsistent with the opportunity structure approach and the cultural theory, but they provide some support for the “dual” discrimination hypothesis. Alternative interpretations are discussed in light of these findings.