Profitable entrepreneurship or marginal self-employment? The bimodality of Latina self-employment in the United States

Abstract

We consider the economic development potential of recent dramatic growth in Latina business ownership. Regression modeling with American Community Survey data reveals (a) compared with salaried workers, the entrepreneurial (incorporated business) and other self-employed (unincorporated business) have, respectively, higher and lower rates of English proficiency, college completion, and homeownership; (b) the median Latina entrepreneur earns more than the median unincorporated self-employed but less than a comparable salaried worker; and (c) type of work matters less to Latina’s earnings than having a college degree and working full-time. Working Latinas can benefit from educational opportunities, family-friendly work arrangements, and business incorporation.