Self-Employment and Earnings among High-Skilled Immigrants in the United States
AbstractThis paper uses data from the 1980 and 1990 U.S. Censuses to analyze the labor market experience of high-skilled immigrants relative to high-skilled natives. Immigrants are found to be more likely to be working in one of the high-skilled occupations than natives, but the gap between the two groups decreased in the 1980’s. Given the high self-employment rates of this group of workers, about 20 percent, it is important to study this aspect of the labor market experience. High-skilled natives are more likely to be self-employed than high-skilled immigrants. Models of the self-employment decision, controlling for differences in socio-economic background, occupation, regional differences in immigrant population proportions, national origin and ethnicity, are estimated. Evidence of positive enclave effects on self-employment probabilities is found. Predicted earnings of self-employed immigrants are higher throughout most of their work life relative to wage/salary immigrants and natives, as well as compared to self-employed natives. Furthermore, there appears to be very little difference in predicted earnings across national origin group of self-employed immigrants. The low variation in predicted earnings across country of origin groups is not found for wage/salary immigrants.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 175.
Length: 50 pages
Date of creation: Jul 2000
Date of revision:
Publication status: published in: Cornelius, W. A. / Espenshade, T. J. (eds.), The International Migration of the Highly Skilled: Demand, Supply and Development Consequences, La Jolla, CA, 163-195
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Find related papers by JEL classification:
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
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