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Self-Employed Immigrants in Denmark and Sweden: A Way to Economic Self-Reliance?

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  • Andersson Joona, Pernilla

    ()
    (SOFI, Stockholm University)

  • Wadensjö, Eskil

    ()
    (Stockholm University)

Abstract

Immigrants have a weak position in the labour market in most European countries. Many have difficulties in establishing themselves in the labour market, the employment rate is low and the hourly wages are generally lower than what could be expected from characteristics (age, gender, education). Many have to rely on the social transfer payments including social assistance. One way to avoid the problems in getting a job is to become self-employed. In this paper we make use of two large data-sets to study self-employment among immigrants in Denmark and Sweden. The three main issues covered are 1) if the immigrants are overrepresented among the self-employed, 2) the characteristics of self-employed immigrants, and 3) the incomes of the self-employed immigrants. In each case we compare the situation in the two countries. The immigrants, especially immigrants from non-Western countries, are overrepresented among the self-employed in both countries. The selfemployed immigrants in both countries have relatively low incomes, lower than natives with the corresponding characteristics.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1130.

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Length: 24 pages
Date of creation: Apr 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1130

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Keywords: immigrant workers; self-employment;

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References

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  1. Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, Elsevier, vol. 7(5), pages 603-628, September.
  2. Moore, Robert L, 1983. "Employer Discrimination: Evidence from Self-Employed Workers," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 496-501, August.
  3. George J. Borjas, 1986. "The Self-Employment Experience of Immigrants," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 485-506.
  4. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 97(4), pages 808-27, August.
  5. George J. Borjas & Stephen G. Bronars, 1988. "Consumer Discrimination and Self-Employment," NBER Working Papers 2627, National Bureau of Economic Research, Inc.
  6. Jensen, Kraen Blume & Ejrnaes, Mette & Nielsen, Helena Skyt & Würtz, Allan, . "Self-Employment among Immigrants: A Last Resort?," Economics Working Papers, School of Economics and Management, University of Aarhus 2003-13, School of Economics and Management, University of Aarhus.
  7. Fairlie, Robert, 2014. "Ethnic and Racial Self-Employment Differences and Possible Explanations," Santa Cruz Department of Economics, Working Paper Series qt24p7v6gc, Department of Economics, UC Santa Cruz.
  8. Blume, Kraen & Gustafsson, Bjorn & Pedersen, Peder J. & Verner, Mette, 2003. "A Tale of Two Countries: Poverty among Immigrants in Denmark and Sweden since 1984," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  9. Kihlstrom, Richard E & Laffont, Jean-Jacques, 1979. "A General Equilibrium Entrepreneurial Theory of Firm Formation Based on Risk Aversion," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 87(4), pages 719-48, August.
  10. Lindh, Thomas & Ohlsson, Henry, 1996. "Self-Employment and Windfall Gains: Evidence from the Swedish Lottery," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(439), pages 1515-26, November.
  11. David G. Blanchflower, 2000. "Self-Employment in OECD Countries," NBER Working Papers 7486, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Andersson Joona, Pernilla & Wadensjö, Eskil, 2004. "Other Forms of Employment: Temporary Employment Agencies and Self-Employment," IZA Discussion Papers 1166, Institute for the Study of Labor (IZA).
  2. 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).
  3. David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc.
  4. Andersson Joona, Pernilla & Wadensjö, Eskil, 2004. "Why Do Self-Employed Immigrants in Denmark and Sweden Have Such Low Incomes?," IZA Discussion Papers 1280, Institute for the Study of Labor (IZA).
  5. Cui, Yuling & Nahm, Daehoon & Tani, Massimiliano, 2013. "Self-Employment in China: Are Rural Migrant Workers and Urban Residents Alike?," IZA Discussion Papers 7191, Institute for the Study of Labor (IZA).
  6. Fairlie, Robert W. & Lofstrom, Magnus, 2013. "Immigration and Entrepreneurship," IZA Discussion Papers 7669, Institute for the Study of Labor (IZA).

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