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Self-Employment among Immigrants: A Last Resort?

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Author Info

  • Kræn Blume Jensen

    (Aarhus School of Business)

  • Mette Ejrnæs

    (Institute of Economics, University of Copenhagen)

  • Helena Skyt Nielsen

    (Aarhus School of Business)

  • Allan Würtz

    (Department of Economics, University of Aarhus)

Abstract

Based on unique register data of male immigrants in Denmark, we investigate whether self-employment is used as a last resort. To identify self-employment as a last resort, we define different types of immigrants as a function of transition probabilities between wage-employment, non-employment and self-employment. The transition probabilities are estimated using discrete competing risks models controlling for unobserved heterogeneity and duration dependence. We find that for certain groups of immigrants a large fraction can be characterized as using self-employment as a last resort.

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File URL: http://www.econ.ku.dk/cam/wp0910/wp0203/2003-08.pdf/
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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics in its series CAM Working Papers with number 2003-08.

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Length: 34 pages
Date of creation: Aug 2003
Date of revision:
Handle: RePEc:kud:kuieca:2003_08

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Web page: http://www.econ.ku.dk/CAM/
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Keywords: discrete competing risks; duration; random effects; self-employment;

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References

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  1. Skott, Peter, 2005. "Fairness as a source of hysteresis in employment and relative wages," Journal of Economic Behavior & Organization, Elsevier, vol. 57(3), pages 305-331, July.
  2. Svarer, Michael, . "Determinants of Divorce in Denmark," Economics Working Papers 2002-19, School of Economics and Management, University of Aarhus.
  3. Dell'Anno, Roberto, . "Estimating the Shadow Economy in Italy: a Structural Equation Approach," Economics Working Papers 2003-7, School of Economics and Management, University of Aarhus.
  4. Andersen, Torben M., . "The Macroeconomic Policy Mix in a Monetary Union with Flexible Inflation Targeting," Economics Working Papers 2003-2, School of Economics and Management, University of Aarhus.
  5. Holler, Manfred & Skott, Peter, . "The importance of setting the agenda," Economics Working Papers 2003-8, School of Economics and Management, University of Aarhus.
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Cited by:
  1. Millán, José María & Congregado, Emilio & Román, Concepción, 2014. "Persistence in entrepreneurship and its implications for the European entrepreneurial promotion policy," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 83-106.
  2. Andersson Joona, Pernilla & Wadensjö, Eskil, 2004. "Self-Employed Immigrants in Denmark and Sweden: A Way to Economic Self-Reliance?," IZA Discussion Papers 1130, Institute for the Study of Labor (IZA).
  3. José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.
  4. Amelie Constant & Klaus F. Zimmermann, 2004. "Self-Employment Dynamics across the Business Cycle: Migrants versus Natives," Discussion Papers of DIW Berlin 455, DIW Berlin, German Institute for Economic Research.
  5. Blume, Kraen & Verner, Mette, 2007. "Welfare dependency among Danish immigrants," European Journal of Political Economy, Elsevier, vol. 23(2), pages 453-471, June.
  6. 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).

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