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The Effect of Immigration on Native Self-Employment

Author

Listed:
  • Robert W. Fairlie

    (University of California, Santa Cruz)

  • Bruce D. Meyer

    (Northwestern University and National Bureau of Economic Research)

Abstract

We examine the impact of immigration on self-employed natives. In a new general equilibrium model of self-employment and wage/salary work, a range of plausible parameter values implies small negative effects of immigration on native self-employment rates and earnings. Using 1980 and 1990 Census microdata, we then examine the relationship between changes in immigration and native self-employment rates and earnings across 132 of the largest U.S. metropolitan areas. We find evidence suggesting that self-employed immigrants displace self-employed natives but do not have a negative effect on native self-employment earnings. The effects are much larger than those predicted by the theoretical model.

Suggested Citation

  • Robert W. Fairlie & Bruce D. Meyer, 2003. "The Effect of Immigration on Native Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 21(3), pages 619-650, July.
  • Handle: RePEc:ucp:jlabec:v:21:y:2003:i:3:p:619-650
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Saiz, Albert, 2007. "Immigration and housing rents in American cities," Journal of Urban Economics, Elsevier, vol. 61(2), pages 345-371, March.
    2. Magnus Lofstrom, 2014. "Immigrants and entrepreneurship," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-85, September.
    3. Minniti, Maria & Lévesque, Moren, 2008. "Recent developments in the economics of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 603-612, November.
    4. William Betz & Nicole Simpson, 2013. "The effects of international migration on the well-being of native populations in Europe," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-21, December.
    5. Robert W. Fairlie & Christopher Woodruff, 2007. "Mexican Entrepreneurship: A Comparison of Self-Employment in Mexico and the United States," NBER Chapters,in: Mexican Immigration to the United States, pages 123-158 National Bureau of Economic Research, Inc.
    6. Marcén, Miriam, 2014. "The role of culture on self-employment," Economic Modelling, Elsevier, vol. 44(S1), pages 20-32.
    7. Constant, Amelie F. & Shachmurove, Yochanan, 2003. "Entrepreneurial Ventures and Wage Differentials Between Germans and Immigrants," IZA Discussion Papers 879, Institute for the Study of Labor (IZA).
    8. Baez, Javier E., 2011. "Civil wars beyond their borders: The human capital and health consequences of hosting refugees," Journal of Development Economics, Elsevier, vol. 96(2), pages 391-408, November.
    9. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    10. Tengeh, Robertson Khan & Ballard, Harry & Slabbert, Andre, 2011. "A framework for acquiring the resources vital for the start-up of a business in South Africa:an African Immigrant’s Perspective," MPRA Paper 34211, University Library of Munich, Germany.
    11. Bogan, Vicki & Darity Jr., William, 2008. "Culture and entrepreneurship? African American and immigrant self-employment in the United States," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 1999-2019, October.
    12. Pylypchuk, Yuriy, 2009. "Effects of immigration on the health insurance status of natives," Journal of Health Economics, Elsevier, vol. 28(5), pages 1028-1037, September.

    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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