Occupational closure and immigrant entrepreneurship: Russian Jews in Israel

Abstract

The recent wave of Jews emigrating from countries of the former Soviet Union to Israel has created structural conditions for immigrant entrepreneurship. The large size of the migrant population and its spatial concentration create a demand for services and products that can be provided by immigrants. This paper investigates the factors associated with intentions to open a small business in a sample of Jewish immigrants from the countries of the former Soviet Union. It was found that intentions to open a small business are related to previous business experience, education, income, and length of residence in the country. Immigrants become interested in entrepreneurship after learning that their prospects of finding a job in their profession are meager and explain their motivation to open a small business as being to increase their income. The findings seem to support the disadvantage theory that conceptualizes entrepreneurship as an adaptive mechanism to structural barriers in the primary labor market that create an occupational closure for immigrants possessing low and middle levels of education and income.