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Immigrant versus Native Businesswomen: Proclivity and Performance

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  • Constant, Amelie F.

    (Temple University)

Abstract

Career positions in German economic life are still male-dominated, and the driving forces behind success are not yet well understood. This paper contributes to a better understanding by classifying success stories in self-employment and business careers, and by investigating differences between native women (both from West and East Germany) and migrants using a rich data set from the German Socio-economic Panel. Results on self-employment proclivity are very sensitive to the alternative choice. Women choose self-employment over a business career in the salaried sector when they are older, less educated, have under-age children, and parents who are self-employed themselves. When women are younger and more educated but have children, they choose self-employment as a way to circumvent unemployment. Women who are more educated and do not have under-age children are more likely to be businesswomen in the salaried sector, suggesting a clear choice for a secure job. East German women are less likely to choose self-employment or a business career than West German women. Overall, compared to other types of employment, selfemployment offers women the desirable and valuable element of time and space flexibility. Businesswomen in paid-employment earn the highest wages and this is long-lasting. Compared to women in lower dependent employment, those in self-employment earn more. Thus, self-employment offers women a path to economic success. Invariably, East German women earn less than West German women.

Suggested Citation

  • Constant, Amelie F., 2004. "Immigrant versus Native Businesswomen: Proclivity and Performance," IZA Discussion Papers 1234, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp1234
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    References listed on IDEAS

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    1. 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.
    2. Constant, Amelie F. & Shachmurove, Yochanan, 2003. "Entrepreneurial Ventures and Wage Differentials Between Germans and Immigrants," IZA Discussion Papers 879, Institute of Labor Economics (IZA).
    3. Constant, Amelie F. & Shachmurove, Yochanan & Zimmermann, Klaus F., 2003. "What Makes an Entrepreneur and Does It Pay? Native Men, Turks, and Other Migrants in Germany," IZA Discussion Papers 940, Institute of Labor Economics (IZA).
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    Cited by:

    1. A. Arrighetti & G. Foresti & S. Fumagalli & A. Lasagni, 2018. "Are Migrant Firms Actually Different From Native Firms?," Economics Department Working Papers 2018-EP05, Department of Economics, Parma University (Italy).

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    More about this item

    Keywords

    entrepreneurship; immigrants; self-employment; occupational choice; economics of minorities; economics of gender;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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