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Determinants of self-employment among Polish and Romanian immigrants in Germany

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  • Marek Szarucki
  • Jan Brzozowski
  • Jelena Stankevičienė

Abstract

This empirical study investigates the determinants of self-employment propensity of Polish and Romanian immigrants in Germany. The German economy is an important object of analysis, as it is the most important destination for international migrants in the European Union. In the paper, we use the recently collected M sample of the German Socio-Economic Panel to examine which personal, country of birth-specific socio-economic and cultural factors influence the self-employment propensity of immigrants. The results of binominal logit regression show that the Central European migrants exhibit different self-employment propensity than migrants from former Yugoslavia, Russian and Kazakhstan, Turkey and Italy, with the self-employment aversion especially strong among Romanians. These differences remain substantial even after controlling for social and human capital endowment of the individuals. This study offers important policy recommendations, showing the potential obstacles in encouraging entrepreneurial activity of immigrants. This topic is becoming increasingly important with the current migration crisis in the EU, caused by intensive inflow of asylum-seeking foreigners in 2015.

Suggested Citation

  • Marek Szarucki & Jan Brzozowski & Jelena Stankevičienė, 2016. "Determinants of self-employment among Polish and Romanian immigrants in Germany," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(4), pages 598-612, July.
  • Handle: RePEc:taf:jbemgt:v:17:y:2016:i:4:p:598-612
    DOI: 10.3846/16111699.2016.1202313
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    References listed on IDEAS

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    1. Thomas Liebig, 2007. "The Labour Market Integration of Immigrants in Denmark," OECD Social, Employment and Migration Working Papers 50, OECD Publishing.
    2. Thomas Liebig, 2007. "The Labour Market Integration of Immigrants in Australia," OECD Social, Employment and Migration Working Papers 49, OECD Publishing.
    3. Kaczmarczyk, Pawel & Tyrowicz, Joanna, 2015. "Winners and Losers among Skilled Migrants: The Case of Post-Accession Polish Migrants to the UK," IZA Discussion Papers 9057, Institute for the Study of Labor (IZA).
    4. Thomas Liebig, 2007. "The Labour Market Integration of Immigrants in Germany," OECD Social, Employment and Migration Working Papers 47, OECD Publishing.
    5. McGinnity, Frances & Gijsberts, Merove, 2015. "Perceived Group Discrimination among Polish Migrants to Western Europe: Comparing Germany, the Netherlands, the UK and Ireland," Papers WP502, Economic and Social Research Institute (ESRI).
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    1. repec:krk:eberjl:v:5:y:2017:i:2:p:177-193 is not listed on IDEAS
    2. repec:krk:eberjl:v:5:y:2017:i:2:p:159-176 is not listed on IDEAS

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