Occupational choice and returns to self-employment among immigrants
Purpose - Self-employment has been stressed as a way for immigrants to enter and improve their situation in the labour market. However, research shows that some people who become self-employed revert to wage employment or unemployment. The purpose of the paper is to study the labour market consequences of temporary self-employment on paid employment among immigrants. Design/methodology/approach - The paper uses micro-econometric methods to estimate the effect of self-employment, relative to continued wage employment, on earnings and employment opportunities in 2006. The paper also identifies the type of wage earner that temporarily enters self-employment. Findings - The paper finds that, relative to continued wage employment, self-employment, with few exceptions, does not improve outcomes in the wage sector of immigrants and may in fact be associated with lower earnings and difficulties in returning to paid employment. Practical implications - The results indicate that encouraging immigrant wage earners to become self-employed should be done with care, since self-employment does not necessarily improve subsequent labour market outcomes. Originality/value - This study will be valuable to those who are interested in the economic consequences of immigrant self-employment.
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Volume (Year): 32 (2011)
Issue (Month): 8 (November)
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Evgueni Vinogradov & Espen J. Isaksen, 2008. "Survival Of New Firms Owned By Natives And Immigrants In Norway," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 13(01), pages 21-38.
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1129, The Research Institute of the Finnish Economy.
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- Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-535, June.
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Elsevier, vol. 14(4), pages 716-729, August.
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- Pernilla Andersson, 2007. "Do the unemployed become successful entrepreneurs?," International Journal of Manpower, Emerald Group Publishing, vol. 28(7), pages 604-626, October.
- Mats Hammarstedt, 2006. "The predicted earnings differential and immigrant self-employment in Sweden," Applied Economics, Taylor & Francis Journals, vol. 38(6), pages 619-630.
- repec:eme:ijmpps:v:30:y:2009:i:1/2:p:165-175 is not listed on IDEAS
- Clain, Suzanne Heller, 2000. "Gender differences in full-time self-employment," Journal of Economics and Business, Elsevier, vol. 52(6), pages 499-513.
- Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, vol. 7(5), pages 603-628, September.
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