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The predicted earnings differential and immigrant self-employment in Sweden

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  • Mats Hammarstedt

Abstract

This paper investigates the influence of the predicted earnings differential between self-employment and wage-employment on self-employment propensities among immigrants in Sweden. Immigrants from non-European countries have essentially lower earnings from self-employment and wage-employment than immigrants from European countries. It is found that the difference between an immigrant's predicted earnings in self- and wage-employment has a strong influence on an immigrant's self-employment decision. A one unit increase in the log differential between self-employment and wage-employment earnings increase the self-employment rate among immigrants by about 5 percentage points, suggesting that discriminatory wages in the wage-employment sector may push immigrants towards self-employment.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 6 ()
Pages: 619-630

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Handle: RePEc:taf:applec:v:38:y:2006:i:6:p:619-630

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Cited by:
  1. Lina Andersson, 2011. "Occupational choice and returns to self-employment among immigrants," International Journal of Manpower, Emerald Group Publishing, vol. 32(8), pages 900-922, November.
  2. Theodore Lianos & Anastasia Pseiridis, 2009. "On the occupational choices of return migrants," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(2), pages 155-181, March.
  3. Lina Andersson & Mats Hammarstedt, 2010. "Intergenerational transmissions in immigrant self-employment: Evidence from three generations," Small Business Economics, Springer, vol. 34(3), pages 261-276, April.
  4. Altin Vejsiu, 2011. "Incentives to self-employment decision in Sweden," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(4), pages 379-403.
  5. Williams, Donald R., 2012. "Gender discrimination and self-employment dynamics in Europe," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 153-158.
  6. Hedberg, Charlotta, 2009. "Intersections of Immigrant status and Gender in the Swedish Entrepreneurial Landscape," SULCIS Working Papers 2009:8, Stockholm University Linnaeus Center for Integration Studies - SULCIS.
  7. Claudio Mancilla & Yancy Vaillant & Esteban Lafuente, 2011. "HOW ENTREPRENEURIALLY INFLUENTIAL SOCIAL TRAITS AFFECT BUSINESS CREATION AMONGST RURAL IMMIGRANTS: Evidence from Spain," ERSA conference papers ersa10p1464, European Regional Science Association.
  8. Ali M Ahmed & Lina Andersson & Mats Hammarstedt, 2009. "Ethnic Discrimination in the Market Place of Small Business Transfers," Economics Bulletin, AccessEcon, vol. 29(4), pages 3050-3058.
  9. Andersson Joona, Pernilla & Wadensjö, Eskil, 2006. "Employees Who Become Self-Employed: Do Labour Income and Wages Have an Impact?," IZA Discussion Papers 1971, Institute for the Study of Labor (IZA).
  10. Andersson, Lina & Hammarstedt, Mats & Hussain, Shakir & Shukur, Ghazi, 2011. "Ethnic origin, local labour markets and self-employment in Sweden: A Multilevel Approach," Working Paper Series in Economics and Institutions of Innovation 261, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  11. Lina Andersson & Mats Hammarstedt, 2011. "Transmission of self-employment across immigrant generations: the importance of ethnic background and gender," Review of Economics of the Household, Springer, vol. 9(4), pages 555-577, December.

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