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Do the Falling Earnings of Immigrants Apply to Self-employed Immigrants?

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  • Marc Frenette

Abstract

It is well known that the earnings of recent cohorts of immigrant men have fallen further behind native-born men. Using several years of Canadian Census data, this study finds that immigrants have turned to self-employment at a much faster rate than the native born. In addition, the earnings gap between self-employed immigrant and native-born men has not grown with successive cohorts, but rather has followed a cyclical movement: narrowing at the peak, and widening in times of weaker economic activity. However, immigrants choosing self-employment still face challenges, as their earnings are far below native-born earnings, and convergence is a lengthy process. Copyright 2004 Blackwell Publishing Ltd..

Suggested Citation

  • Marc Frenette, 2004. "Do the Falling Earnings of Immigrants Apply to Self-employed Immigrants?," LABOUR, CEIS, vol. 18(2), pages 207-232, June.
  • Handle: RePEc:bla:labour:v:18:y:2004:i:2:p:207-232
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    References listed on IDEAS

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    1. James Ted McDonald & Christopher Worswick, 1998. "The Earnings of Immigrant Men in Canada: Job Tenure, Cohort, and Macroeconomic Conditions," ILR Review, Cornell University, ILR School, vol. 51(3), pages 465-482, April.
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    6. Finnie, Ross & Laporte, Christine & Rivard, Maud-Catherine, 2002. "Setting up Shop: Self-employment Amongst Canadian College and University Graduates," Analytical Studies Branch Research Paper Series 2002183e, Statistics Canada, Analytical Studies Branch.
    7. George J. Borjas, 1986. "The Self-Employment Experience of Immigrants," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 485-506.
    8. Schuetze, Herb J., 2000. "Taxes, economic conditions and recent trends in male self-employment: a Canada-US comparison," Labour Economics, Elsevier, vol. 7(5), pages 507-544, September.
    9. Green, David A, 1999. "Immigrant Occupational Attainment: Assimilation and Mobility over Time," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 49-79, January.
    10. Bernt Bratsberg & James F. Ragan Jr., 2002. "The Impact of Host-Country Schooling on Earnings: A Study of Male Immigrants in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 63-105.
    11. Lin, Zhengxi & Picot, Garnett & Compton, Janice, 2000. "The Entry and Exit Dynamics of Self-Employment in Canada," Small Business Economics, Springer, vol. 15(2), pages 105-125, September.
    12. Mary L. Grant, 1999. "Evidence of New Immigrant Assimilation in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 930-955, August.
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    Cited by:

    1. Robert W. Fairlie & Julie Zissimopoulos & Harry Krashinsky, 2010. "The International Asian Business Success Story? A Comparison of Chinese, Indian and Other Asian Businesses in the United States, Canada and United Kingdom," NBER Chapters,in: International Differences in Entrepreneurship, pages 179-208 National Bureau of Economic Research, Inc.
    2. Evgueni Vinogradov & Lars Kolvereid, 2007. "Cultural background, human capital and self-employment rates among immigrants in Norway," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 19(4), pages 359-376, July.

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