The low incomes of self-employed immigrants in Denmark and Sweden
AbstractIn this paper we analyse the incomes of self-employed in Denmark and Sweden and ask if there exist income differences between natives and immigrants. The OLS-estimates show that non-western immigrants have significantly lower annual incomes than their native counterparts. We then estimate quantile regressions and find that the difference between natives and non-Western immigrants is significantly smaller among those with high incomes (90th percentile) compared to those with low incomes (10th percentile). One explanation for this result may be that immigrants charge a lower price for their goods and services due to discriminatory behaviour among customers. Another explanation may be that non-Western immigrants have a lower reservation wage and hence accept to stay in business receiving a lower profit.
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Bibliographic InfoArticle provided by ULB -- Universite Libre de Bruxelles in its journal Brussels economic review.
Volume (Year): 48 (2005)
Issue (Month): 1-2 ()
Self-employed; Immigrant worker; Income distribution; Quantile regressions;
Find related papers by JEL classification:
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
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