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Migrant self-employment in Germany: on the risks, characteristics and determinants of precarious work

In: Self-Employment as Precarious Work: a European Perspective

Author

Listed:
  • Berwing, Stefan
  • Isaak, Andrew
  • Leicht, René

Abstract

There has been a long-standing debate among scholars about the nature of migrant self-employment. A popular assumption of the narrative is that migrants are forced into low-wage sectors with poor working conditions due to a lack of resources and opportunities. Here, we study the extent and determinants of precarious self-employment in Germany as well as which types of fields and occupations are most affected by precarious working conditions. To answer these questions, we develop an indicator to operationalize precarious self-employment using the 2011 German Microcensus. Quantitative analysis reveals that while migrants are more frequently engaged in precarious self-employment in absolute terms, this difference does not reach statistical significance. However, we do find clear differences for the sector of economic activity and profession, which can be interpreted as endowment effects. Overall, our results tend towards debunking the assumption that equates migrant self-employment in Germany to precarious work.

Suggested Citation

  • Berwing, Stefan & Isaak, Andrew & Leicht, René, 2019. "Migrant self-employment in Germany: on the risks, characteristics and determinants of precarious work," EconStor Open Access Book Chapters, in: Self-Employment as Precarious Work: a European Perspective, pages 186-214, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:eschap:330165
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    Keywords

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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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