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Unformatted text preview: Immigrant Entrepreneurship Koreans
Highest rate of self employment in the United States in 1990 and second highest in 2000 Rate of selfemployment: 180.46 per thousand employed population; (Source: 1990 US Census, Foreign Population Tables) 205.15 rate per thousand employed population Rate of selfemployment of ALL foreign born in 2000 was 96.96 per thousand employed population Types of businesses? green grocers fruit vendors nail salons liquor stores, etc dry cleaners wig stores fish stores Causes of Self-Employment
1) Language Barriers 2) Unfamiliarity with American customs and culture 3) Inability to transfer educational and occupational [i.e., human] capital 4) Discrimination: Disadvantaged against competition Resources for Self-Employment
1) Class resources: Personal savings 2) Ethnic resources [trust and allegiance in ethnic community] 3) Human capital: business knowhow 4) Social capital: Rotating credit association (kye system) loans shared knowledge Korean Immigrant Niches
Two types: Vacant Niches and New Niches "Vacant Niches": Markets that are largely ignored by U.S. corporations "Mass Marketing" or "New Niches": Markets that are created by making luxury products affordable through the lowering of labor costs Vacant Niches
Little competition from the larger chain corporations Highrisk and highcrime /poor neighborhoods in urban centers Laborintensive businesses that demand long hours Typically operates in a stream of `ethnic succession' Niches of Mass Marketed Luxury
Mass marketing of traditionally luxury services or items Labor intensive work Affordable luxuries VACANT NICHES OR ABANDONED MARKETS?
Vacant Niches (Lee) Abandoned Markets (Bonacich) Korean Entreprenuers as Source of Cheap Labor and Profits for Capitalists
1) Allows penetration into `abandoned' market of corner stores [good for manufacturers]... 2) Unequal exchange between corporate capitalintensive commodities and immigrant laborintensive services Korean Entreprenuers as Source of Cheap Labor and Profits for Capitalists con't 3) Cheap labor via franchising and subcontracting 4) Control of inflation with cheap immigrantprovided goods and services 5) Labor paternalism: employment of co ethnics as sort of internship Why Exploitative?
A limited form of mobility that is at the expense of the labor of others in the ethnic community. Politics of "delayed gratification:" others believe it to be acceptable while others see it as a means of exploitation/justifies exploitation. "A relatively small number of individuals in such a system accumulate vast quantities of wealth, never having to work, while most other people must spend their lives in toil, never able to make enough money to climb out of hardship and poverty. The hardworking men and women of the world are the basis of all wealth, but they rarely see the benefits of their labor" (Bonacich, 27). African Americans
Factors that account for low rate of self employment: No resources No ethnic networks Desegregation=No ethnic enclave Concentrated in wage labor market Institutional racism: Banks and distributors IMPACTS OF IMMIGRATION ON AFRICAN AMERICAN COMMUNITY
NEW YORK Immigrants include blacks 2000: 600,000 foreign born blacks but majority (58%) are natives with native born parents Do immigrants hurt economic activities of blacks? Difficult question due to challenge of containing competing skill group as well as appropriate place/sector/area of competition Immigrants versus native blacks
No high school diploma Foreign born earn a third more than native blacks Unemployment rate of foreign born is half of native blacks Why? Attitudes Immigrants willing to tolerate harsh conditions, low pay, deadend jobs because better than "back home" Native blacks who came of age in postcivil rights era see these job conditions as symbol of racial subordination Immigrants over Blacks Employers prefer immigrants than blacks (due to stereotype of work ethics)
Negative views of "black underclass" less likely to work hard and more likely to complain (stereotypes) "African Americans have the temerity to expect good wages for hard work, when employers have no difficulty finding immigrants who are happy (as far as the employers can tell) to work hard at an unpleasant job for low wages)" (Roger Waldinger and colleague) ECONOMIC IMPACT OF IMMIGRATION
According to National Academy of Science, immigration accounts for 44 percent of the decline in the real wage of high school drop outs; "What might have been..." possibly that wages could no have declined if without large pool of cheap labor but possible that jobs and companies would relocate to cheaper wage areas in the US or abroad ECONOMIC IMPACT OF IMMIGRATION
High school drop outs lose but high school graduates win.... Immigrant population creates demand for public services such as health care, schooling, etc Postcivil rights era gain for African Americans is public sector employment which had been vacated by whites However, 1990s saw decline in African American public sector employment and rise in second generation immigrants. DAVID PALUMBO-LIU
"It may be that by tracking the various positions of Asians in America one can achieve a sense of precisely those contradictions that inform American racism. In order to celebrate the triumph of American democracy, it is necessary to have a racial Other whose success bears witness to the legitimacy of such basic notions as upward mobility... DAVID PALUMBO-LIU
Yet even an assimilation into the elite classes cannot erase the mark of racial difference and the psychic and cultural differences that are assumed to accompany it. Such differences are held in reserve, able to be activited and deactivated selectively for different purposes. The figure of the Asian has been used to differentiate and particularize other racial minorities within that space... DAVID PALUMBO-LIU
... of representation, and acts as well as a secondary modeling system. The gap between Asian and American is both elided when it is to the good of the hegemonic to have it disappear, and retained when the minor threatens not only to join the dominant but to overwhelm and force a revision of it (212). Liminal position of Asian Americans...
To elide the accountability for structure of an economy that historically has exploited, denied access to Blacks/Latinos.... ASIAN AMERICANS PITTED AGAINST BLACKS AND LATINOS For example.... "model minority" myth and "vigilante store owners" Asians used to avoid "critiquing the unequal and contradictory nature of democratic capitalism" (194). SELECTIVE INCORPORATION OF ASIANS: MODEL MINORITY AND YELLOW PERIL ...
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This note was uploaded on 08/30/2008 for the course ASA 002 taught by Professor Rhacelparrenas during the Winter '08 term at UC Davis.
- Winter '08