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Self-employment as a stepping stone to better labor market matching: a comparison between immigrants and natives

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  • Ulceluse, Magdalena

Abstract

The paper investigates the relation between overeducation and self-employment, in a comparative analysis between immigrants and natives. Using the EU Labour Force Survey for the year 2012 and controlling for a list of demographic characteristics and general characteristics of 30 destination countries, it finds that the likelihood of being overeducated decreases for self-employed immigrants, with inconclusive results for self-employed natives. The results shed light on the extent to which immigrants adjust to labor market imperfections and barriers to employment and might help explain the higher incidence of self-employment that immigrants exhibit, when compared to natives. This is the first study to systematically study the nexus between overeducation and self-employment in a comparative framework. Moreover, the paper tests the robustness of the results by employing two different measures of overeducation, contributing to the literature of the measurement of overeducation.

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  • Ulceluse, Magdalena, 2020. "Self-employment as a stepping stone to better labor market matching: a comparison between immigrants and natives," Journal of Demographic Economics, Cambridge University Press, vol. 86(4), pages 479-501, December.
    • Handle: RePEc:cup:demeco:v:86:y:2020:i:4:p:479-501_2
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    Cited by:

    1. Magdalena Ulceluse & Martin Kahanec, 2023. "Eastward enlargements of the European Union, transitional arrangements and self-employment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 719-742, April.

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