New economic sociologists have focused on the positive effect of social capital embedded in the ethnic structure on the individual's economic actions. However, recent studies on middle-class immigrants provide inconsistent support for this view. This study examines the significance of social capital by investigating the relationship between the income attainment of immigrant entrepreneurs on the one hand, and two forms of institutional arrangements, co-ethnic firm linkages and co-ethnic personal recruitment, on the other. We found that social capital embedded in the ethnic structure does not play a significant role in the income attainment of Chinese immigrant business owners in Toronto. Rather class resources and social capital beyond the ethnic structure significantly increase the level of income attainment.
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