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Being employed by a co-national: A cul-de-sac or a short cut to the main road of the labour market?

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Author Info
Andersson Joona, Pernilla () (Stockholm University Linnaeus Center for Integration Studies - SULCIS)
Wadensjö, Eskil () (Stockholm University Linnaeus Center for Integration Studies - SULCIS)

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Abstract

Self-employment is very common among some immigrant groups in Sweden and many of them hire co-nationals in their firms. One reason might be that they want to give newly arrived co-nationals the possibility to earn an income. But what are the consequences for the employees of being employed by a co-national? This paper analyzes the impact on labour income and future employment prospects of being employed by self-employed co-nationals shortly after arrival to Sweden. We find that immigrants in this group have substantially lower incomes than newly arrived immigrants with other forms of employment. We also find that they are less likely to work as employees in the private sector (other than being employed by a self-employed) in the future and are much more likely to become self-employed.

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File URL: http://www.su.se/content/1/c6/01/18/05/SULCISWP2009_11.pdf
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Publisher Info
Paper provided by Stockholm University Linnaeus Center for Integration Studies - SULCIS in its series SULCIS Working Papers with number 2009:11.

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Length: 28 pages
Date of creation: 30 Oct 2009
Date of revision:
Handle: RePEc:hhs:sulcis:2009_011

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Postal: Stockholm University Linnaeus Center for Integration Studies - SULCIS, Stockholm University, S-10691 Stockholm, Sweden
Web page: http://www.su.se/sulcis
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Related research
Keywords: ethnic economies; self-employment; income;

Find related papers by JEL classification:
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; 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
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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This page was last updated on 2009-11-27.


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