Does labor force diversity really matter for entrepreneurship?: Exploring the South Korean case

Abstract

This study examines whether labor force diversity also matters for entrepreneurship in the context of South Korea, with the aim of evaluating the applicability of previous findings from developed Western countries to the growing Asian nations. The results suggest a clear country variance in labor force diversity effects, revealing negative impacts of demographic diversity and insignificance of cultural diversity on entrepreneurship in South Korea, which is in contrast to prior observations in most Western countries. I propose that South Korea's strong societal hierarchy, historical emphasis on ethnic homogeneity, and existing ethnic polarization reduce the nation's openness towards diversity, resulting in unpromising labor force diversity effects on entrepreneurship in South Korea. This research contributes to the current literature by filling the research gap beyond the regional context of developed Western countries and by suggesting possible country variance in labor force diversity effects according to the nation's varying openness towards diversity.