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The Effect of Immigration on Native Self-Employment

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Author Info
Robert W. Fairlie (University of California, Santa Cruz)
Bruce D. Meyer (Northwestern University and National Bureau of Economic Research)

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Abstract

We examine the impact of immigration on self-employed natives. In a new general equilibrium model of self-employment and wage/salary work, a range of plausible parameter values implies small negative effects of immigration on native self-employment rates and earnings. Using 1980 and 1990 Census microdata, we then examine the relationship between changes in immigration and native self-employment rates and earnings across 132 of the largest U.S. metropolitan areas. We find evidence suggesting that self-employed immigrants displace self-employed natives but do not have a negative effect on native self-employment earnings. The effects are much larger than those predicted by the theoretical model.

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File URL: http://www.journals.uchicago.edu/cgi-bin/resolve?JOLE210305
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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 21 (2003)
Issue (Month): 3 (July)
Pages: 619-650
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Handle: RePEc:ucp:jlabec:v:21:y:2003:i:3:p:619-650

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. George J. Borjas, 1986. "The Self-Employment Experience of Immigrants," NBER Working Papers 1942, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Friedberg, Rachel M & Hunt, Jennifer, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring. [Downloadable!] (restricted)
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  3. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-91, October. [Downloadable!] (restricted)
  4. David A. Jaeger & Susanna Loeb & Sarah E. Turner & John Bound, 1998. "Coding Geographic Areas Across Census Years: Creating Consistent Definitions of Metropolitan Areas," NBER Working Papers 6772, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Devine, Theresa J, 1994. "Changes in Wage-and-Salary Returns to Skill and the Recent Rise in Female Self-Employment," American Economic Review, American Economic Association, vol. 84(2), pages 108-13, May. [Downloadable!] (restricted)
  6. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December. [Downloadable!] (restricted)
  7. Borjas, George J. & Sueyoshi, Glenn T., 1994. "A two-stage estimator for probit models with structural group effects," Journal of Econometrics, Elsevier, vol. 64(1-2), pages 165-182. [Downloadable!] (restricted)
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  8. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Constant, Amelie & Shachmurove, Yochanan, 2003. "Entrepreneurial Ventures and Wage Differentials Between Germans and Immigrants," IZA Discussion Papers 879, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Robert W. Fairlie & Christopher Woodruff, 2006. "Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States," IZA Discussion Papers 2039, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Robert Fairlie & Christopher Woodruff, 2005. "Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States," NBER Working Papers 11527, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-21.


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