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The Persistence of Self-Employment Across Borders: New Evidence on Legal Immigrants to the United States

Author

Listed:
  • Randall Kekoa Quinones Akee

    () (IZA)

  • David A. Jaeger

    () (Department of Economics, College of William and Mary)

  • Konstantinos Tatsiramos

    () (IZA)

Abstract

Using recently-available data from the New Immigrant Survey, we find that previous self-employment experience in an immigrant’s country of origin is an important determinant of their self-employment status in the U.S., increasing the probability of being self-employed by about 7 percent. Our results improve on the previous literature by measuring home-country selfemployment directly rather than relying on proxy measures. We find little evidence to suggest that home-country self-employment has a significant effect on U.S. wages in either paid employment or self employment.

Suggested Citation

  • Randall Kekoa Quinones Akee & David A. Jaeger & Konstantinos Tatsiramos, 2007. "The Persistence of Self-Employment Across Borders: New Evidence on Legal Immigrants to the United States," Working Papers 69, Department of Economics, College of William and Mary.
  • Handle: RePEc:cwm:wpaper:69
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    File URL: http://economics.wm.edu/wp/cwm_wp69.pdf
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    References listed on IDEAS

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    1. Magnus Lofstrom, 2002. "Labor market assimilation and the self-employment decision of immigrant entrepreneurs," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 83-114.
    2. 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.
    3. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-827, August.
    4. Robert W. Fairlie & Bruce D. Meyer, 1996. "Ethnic and Racial Self-Employment Differences and Possible Explanations," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 757-793.
    5. Bates, Timothy, 1995. "Self-employment entry across industry groups," Journal of Business Venturing, Elsevier, vol. 10(2), pages 143-156, March.
    6. Edward P. Lazear, 2004. "Balanced Skills and Entrepreneurship," American Economic Review, American Economic Association, vol. 94(2), pages 208-211, May.
    7. David A. Jaeger, 2007. "Green Cards and the Location Choices of Immigrants in the United States, 1971–2000," Research in Labor Economics, in: Barry R. Chiswick (ed.), Immigration, volume 27, pages 131-183, Emerald Publishing Ltd.
    8. Erik Hurst & Annamaria Lusardi, 2004. "Liquidity Constraints, Household Wealth, and Entrepreneurship," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 319-347, April.
    9. Zissimopoulos, Julie M. & Karoly, Lynn A., 2007. "Transitions to self-employment at older ages: The role of wealth, health, health insurance and other factors," Labour Economics, Elsevier, vol. 14(2), pages 269-295, April.
    10. George J. Borjas, 1986. "The Self-Employment Experience of Immigrants," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 485-506.
    11. Borjas, George J & Bronars, Stephen G, 1989. "Consumer Discrimination and Self-employment," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 581-605, June.
    12. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
    13. Blanchflower, David G & Meyer, Bruce D, 1994. "A Longitudinal Analysis of the Young Self-Employed in Australia and the United States," Small Business Economics, Springer, vol. 6(1), pages 1-19, February.
    14. Michael J. Pisani & José A. Pagán, 2004. "Self-employment in the era of the new economic model in Latin America: a case study from Nicaragua," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(4), pages 335-350, July.
    15. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
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    Citations

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    Cited by:

    1. 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.
    2. repec:krk:eberjl:v:3:y:2015:i:3:p:29-50 is not listed on IDEAS
    3. Sari Pekkala Kerr & William R. Kerr, 2016. "Immigrant Entrepreneurship," NBER Chapters, in: Measuring Entrepreneurial Businesses: Current Knowledge and Challenges, pages 187-249, National Bureau of Economic Research, Inc.
    4. Gonzalo Castañeda, 2013. "The Rise and Fall of the Barcelonnettes in Mexico and their Implications for a Theory of Entrepreneurial Diasporas," Economía Mexicana NUEVA ÉPOCA, , vol. 0(4, Cierre), pages 497-540.
    5. Andersson, Henrik, 2018. "Ethnic Enclaves, Self-Employment and the Economic Performance of Refugees," Working Paper Series 2018:7, Uppsala University, Department of Economics.
    6. de Mello, João M.P. & Waisman, Caio & Zilberman, Eduardo, 2014. "The effects of exposure to hyperinflation on occupational choice," Journal of Economic Behavior & Organization, Elsevier, vol. 106(C), pages 109-123.
    7. Fornaro, Paolo, 2018. "Immigrant Entrepreneurship in Finland," ETLA Reports 83, The Research Institute of the Finnish Economy.
    8. Ken Clark, 2015. "Ethnic minority self-employment," IZA World of Labor, Institute of Labor Economics (IZA), pages 120-120, January.
    9. Evgueni Vinogradov & Eva Jenny Benedikte Jørgensen, 2017. "Differences in international opportunity identification between native and immigrant entrepreneurs," Journal of International Entrepreneurship, Springer, vol. 15(2), pages 207-228, June.
    10. repec:kap:sbusec:v:49:y:2017:i:3:d:10.1007_s11187-017-9848-8 is not listed on IDEAS

    More about this item

    Keywords

    Self-employment; entrepreneurship; New Immigrant Survey;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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