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Immigrant-native differences in long-term self-employment

Author

Listed:
  • Lina Aldén

    (Linnaeus University)

  • Spencer Bastani

    (Institute for Evaluation of Labour Market and Education Policy (IFAU), Uppsala, Sweden and Research Institute of Industrial Economics (IFN))

  • Mats Hammarstedt

    (Department of Economics and Statistics, Linnaeus University, Växjö, Sweden and Research Institute of Industrial Economics (IFN))

  • Chizheng Miao

    (Linnaeus University)

Abstract

We study immigrant-native differences in long-term self-employment in Sweden combining population-wide register data and a unique survey targeting a large representative sample of the total population of long-term self-employment. Using the registers, we analyze the evolution of labor and capital incomes during the first 10 years following self-employment entry. We find that immigrant-native differences in labor income become smaller, whereas immigrant-native differences in capital income grow stronger, over the course of self-employment. These findings are robust to controlling for factors such as organizational form and type of industry. We use the survey data to gain further insights into immigrant-native differences among the long-term self-employed, and show that immigrant self-employed experience more problems and earn less, but work harder than native self-employed. They also have a less personal relation to their customers, do not enjoy their work as much as natives, and appear to have different perspectives on self-employment in general.

Suggested Citation

  • Lina Aldén & Spencer Bastani & Mats Hammarstedt & Chizheng Miao, 2022. "Immigrant-native differences in long-term self-employment," Small Business Economics, Springer, vol. 58(3), pages 1661-1697, March.
    • Handle: RePEc:kap:sbusec:v:58:y:2022:i:3:d:10.1007_s11187-021-00462-z
    DOI: 10.1007/s11187-021-00462-z
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    2. Berggren, Niclas & Ljunge, Martin & Nilsson, Therese, 2022. "Immigrants’ Tolerance and Integration into Society," Working Paper Series 1447, Research Institute of Industrial Economics.

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