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Ethnicity and self-employment earnings in Britain 1973-95

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  • Kenneth Clark
  • Stephen Drinkwater
  • Derek Leslie

Abstract

Using data from the General Household Survey 1973-95, it is shown that there were substantial differences between the earnings of whites and nonwhites in the self-employment sector of the British labour market over the period. Fitting a model of earnings determination which takes account of sample selectivity allows these differences to be decomposed into characteristics and coefficients effects. It turns out that both are important. Further decomposition reveals a crucial role for differences in the amount of schooling received by whites and nonwhites and in the returns to age, gender, marital status and qualifications.

Suggested Citation

  • Kenneth Clark & Stephen Drinkwater & Derek Leslie, 1998. "Ethnicity and self-employment earnings in Britain 1973-95," Applied Economics Letters, Taylor & Francis Journals, vol. 5(10), pages 631-634.
  • Handle: RePEc:taf:apeclt:v:5:y:1998:i:10:p:631-634 DOI: 10.1080/135048598354302
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    References listed on IDEAS

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    1. Schoonbeek, Lambert, 1992. "Negative coefficients and eigenvalues of economic models," Economic Modelling, Elsevier, vol. 9(2), pages 111-120, April.
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    Cited by:

    1. Greene, Francis J. & Han, Liang & Martin, Sean & Zhang, Song & Wittert, Gary, 2014. "Testosterone is associated with self-employment among Australian men," Economics & Human Biology, Elsevier, pages 76-84.
    2. Giuliano Guerra & Roberto Patuelli, 2014. "The influence of role models on immigrant self-employment: a spatial analysis for Switzerland," International Journal of Manpower, Emerald Group Publishing, vol. 35(1/2), pages 187-215, May.
    3. Alicia Robb & Robert Fairlie, 2006. "Determinants of Business Success: An Examination of Asian-Owned Businesses in the United States," Working Papers 06-32, Center for Economic Studies, U.S. Census Bureau.
    4. repec:spr:eurasi:v:4:y:2014:i:1:p:51-87 is not listed on IDEAS
    5. 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.
    6. repec:spr:pharme:v:4:y:2014:i:1:p:51-87 is not listed on IDEAS
    7. Gil S. Epstein & Odelia Heizler (Cohen), 2016. "Networks in the Diaspora," Development Working Papers 389, Centro Studi Luca d'Agliano, University of Milano.
    8. Juan Pérez Velasco Pavón, 2014. "Economic behavior of indigenous peoples: the Mexican case," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), pages 1-58.
    9. Clark, Ken & Drinkwater, Stephen, 2013. "UK Migration Policy and Migration from Eastern Partnership Countries," IZA Discussion Papers 7665, Institute for the Study of Labor (IZA).
    10. repec:esr:resser:bkmnext183 is not listed on IDEAS
    11. Joanna Tyrowicz & Magdalena Smyk, 2017. "Pushed into necessity? Labor market inequality and entrepreneurship of disadvantaged group," GRAPE Working Papers 6, GRAPE Group for Research in Applied Economics.
    12. Sahin, M. & Nijkamp, P. & Rietdijk, M., 2009. "Cultural Diversity and Urban Innovativeness: Personal and Business Characteristics of Urban Migrant Entrepreneurs," Serie Research Memoranda 0033, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    13. Chiswick, Barry R. & Wang, Zhiling, 2016. "Social Contacts, Dutch Language Proficiency and Immigrant Economic Performance in the Netherlands: A Longitudinal Study," IZA Discussion Papers 9760, Institute for the Study of Labor (IZA).
    14. Nijkamp, P. & Sahin, M., 2009. "Performance indicators of urban migrant entrepreneurship in the netherlands," Serie Research Memoranda 0034, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    15. Robert W. Fairlie & Alicia M. Robb, 2008. "Race and Entrepreneurial Success: Black-, Asian-, and White-Owned Businesses in the United States," MIT Press Books, The MIT Press, edition 1, volume 1, number 026206281x, January.
    16. Ken Clark & Stephen Drinkwater, 2014. "Labour migration to the UK from Eastern partnership countries," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-19, December.
    17. Åstebro, Thomas & Chen, Jing, 2014. "The entrepreneurial earnings puzzle: Mismeasurement or real?," Journal of Business Venturing, Elsevier, pages 88-105.
    18. Ken Clark & Stephen Drinkwater & Catherine Robinson, 2017. "Self-employment amongst migrant groups: new evidence from England and Wales," Small Business Economics, Springer, vol. 48(4), pages 1047-1069, April.
    19. Sari Pekkala Kerr & William R. Kerr & Tina Xu, 2017. "Personality Traits of Entrepreneurs: A Review of Recent Literature," NBER Working Papers 24097, National Bureau of Economic Research, Inc.
    20. Román, Concepción & Congregado, Emilio & Millán, José María, 2013. "Start-up incentives: Entrepreneurship policy or active labour market programme?," Journal of Business Venturing, Elsevier, vol. 28(1), pages 151-175.
    21. Audretsch, David B. & Bönte, Werner & Tamvada, Jagannadha Pawan, 2013. "Religion, social class, and entrepreneurial choice," Journal of Business Venturing, Elsevier, vol. 28(6), pages 774-789.
    22. Daniel Badulescu, 2014. "The Entrepreneurial Way: Calling, Chance Or Opportunity. An Essay," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 243-251, July.
    23. repec:kap:jinten:v:15:y:2017:i:2:d:10.1007_s10843-016-0197-5 is not listed on IDEAS
    24. Marisela Santiago Castro & Michael J Pisani, 2013. "An Initial Review of the Characteristics and Determinants of Female Entrepreneurs in Puerto Rico," REVISTA AD-MINISTER, UNIVERSIDAD EAFIT, February.
    25. Clark, Ken & Drinkwater, Stephen & Robinson, Catherine, 2015. "Self‐Employment amongst Migrant Groups in England and Wales: New Evidence from Census Microdata," IZA Discussion Papers 9539, Institute for the Study of Labor (IZA).

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