[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/hhs/iuiwop/1361.html
   My bibliography  Save this paper

Ethnic Differences in Long-Term Self-Employment

Author

Listed:
  • Aldén, Lina

    (Department of Economics and Statistics, Linnaeus University)

  • Bastani, Spencer

    (Institute for Evaluation of Labour Market and Education Policy (IFAU))

  • Hammarstedt, Mats

    (Department of Economics and Statistics, Linnaeus University)

  • Miao, Chizheng

    (Department of Economics and Statistics, Linnaeus University)

Abstract
We study ethnic differences in long-term self-employment in Sweden combining population-wide register data and a unique survey targeting a large representative sample of the total population of long-term self-employed. Using the registers, we analyze the evolution of labor and capital income during the first ten years following self-employment entry. We find that, while ethnic differences in labor income become smaller over time, ethnic differences in capital income grow stronger during the course of self-employment. These findings are robust to controlling for factors such as organizational form and type of industry. We use the survey data to gain further insights into these differences, and show that immigrant self-employed experience more problems, earn less, but work harder than native self-employed. They also have a less personal relation to their customers, do not enjoy their work as much as natives, and appear to have different perspectives on self-employment in general.

Suggested Citation

  • Aldén, Lina & Bastani, Spencer & Hammarstedt, Mats & Miao, Chizheng, 2020. "Ethnic Differences in Long-Term Self-Employment," Working Paper Series 1361, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1361
    as

    Download full text from publisher

    File URL: https://www.ifn.se/wfiles/wp/wp1361.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Giuliano, Laura & Levine, David I. & Leonard, Jonathan, 2006. "Manager Race and the Race of New Hires," Institute for Research on Labor and Employment, Working Paper Series qt2cb2q1h1, Institute of Industrial Relations, UC Berkeley.
    2. Da Rin, Marco & Di Giacomo, Marina & Sembenelli, Alessandro, 2011. "Entrepreneurship, firm entry, and the taxation of corporate income: Evidence from Europe," Journal of Public Economics, Elsevier, vol. 95(9), pages 1048-1066.
    3. Robert W. Fairlie & Alicia Robb, 2007. "Families, Human Capital, and Small Business: Evidence from the Characteristics of Business Owners Survey," ILR Review, Cornell University, ILR School, vol. 60(2), pages 225-245, January.
    4. Kenneth Clark & Stephen Drinkwater, 2002. "Enclaves, neighbourhood effects and employment outcomes: Ethnic minorities in England and Wales," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 5-29.
    5. Ken Clark & Stephen Drinkwater & Catherine Robinson, 2017. "Self-employment amongst migrant groups: new evidence from England and Wales," Small Business Economics, Springer, vol. 48(4), pages 1047-1069, April.
    6. Fairlie, Robert W, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 80-108, January.
    7. Robert W. Fairlie & Alicia M. Robb, 2007. "Why Are Black-Owned Businesses Less Successful than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 25(2), pages 289-323.
    8. Ross Levine & Yona Rubinstein, 2017. "Smart and Illicit: Who Becomes an Entrepreneur and Do They Earn More?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(2), pages 963-1018.
    9. Karin Edmark & Roger H. Gordon, 2013. "The choice of organizational form by closely-held firms in Sweden: tax versus non-tax determinants," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(1), pages 219-243, February.
    10. William R. Kerr & Martin Mandorff, 2023. "Social Networks, Ethnicity, and Entrepreneurship," Journal of Human Resources, University of Wisconsin Press, vol. 58(1), pages 183-220.
    11. Lina Aldén & Mats Hammarstedt, 2016. "Discrimination in the Credit Market? Access to Financial Capital among Self-employed Immigrants," Kyklos, Wiley Blackwell, vol. 69(1), pages 3-31, February.
    12. Annette Alstadsæter & Martin Jacob, 2016. "Dividend Taxes and Income Shifting," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(4), pages 693-717, October.
    13. Bastani, Spencer & Giebe, Thomas & Miao, Chizheng, 2020. "Ethnicity and tax filing behavior," Journal of Urban Economics, Elsevier, vol. 116(C).
    14. Amelie Constant & Klaus Zimmermann, 2006. "The Making of Entrepreneurs in Germany: Are Native Men and Immigrants Alike?," Small Business Economics, Springer, vol. 26(3), pages 279-300, April.
    15. Michael Hout & Harvey Rosen, 2000. "Self-Employment, Family Background, and Race," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 670-692.
    16. Mats Hammarstedt & Chizheng Miao, 2020. "Self-employed immigrants and their employees: evidence from Swedish employer-employee data," Review of Economics of the Household, Springer, vol. 18(1), pages 35-68, March.
    17. Olof Åslund & Lena Hensvik & Oskar Nordström Skans, 2014. "Seeking Similarity: How Immigrants and Natives Manage in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 405-441.
    18. Blanchard, Lloyd & Zhao, Bo & Yinger, John, 2008. "Do lenders discriminate against minority and woman entrepreneurs?," Journal of Urban Economics, Elsevier, vol. 63(2), pages 467-497, March.
    19. Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, vol. 7(5), pages 603-628, September.
    20. Mats Hammarstedt, 2001. "Immigrant self-employment in Sweden - its variation and some possible determinants," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 13(2), pages 147-161, April.
    21. 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.
    22. Fairlie, Robert W, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 80-108, January.
    23. Elizabeth Asiedu & James A. Freeman & Akwasi Nti-Addae, 2012. "Access to Credit by Small Businesses: How Relevant Are Race, Ethnicity, and Gender?," American Economic Review, American Economic Association, vol. 102(3), pages 532-537, May.
    24. Alicia Robb & Robert Fairlie, 2009. "Determinants of business success: an examination of Asian-owned businesses in the USA," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 827-858, October.
    25. Andrew M. Yuengert, 1995. "Testing Hypotheses of Immigrant Self-Employment," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 194-204.
    26. Lina Andersson & Mats Hammarstedt, 2010. "Intergenerational transmissions in immigrant self-employment: Evidence from three generations," Small Business Economics, Springer, vol. 34(3), pages 261-276, April.
    27. George J. Borjas, 1986. "The Self-Employment Experience of Immigrants," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 485-506.
    28. Laura Giuliano & David I. Levine & Jonathan Leonard, 2009. "Manager Race and the Race of New Hires," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 589-631, October.
    29. Magnus Lofstrom & Timothy Bates, 2013. "African Americans’ pursuit of self-employment," Small Business Economics, Springer, vol. 40(1), pages 73-86, January.
    30. Mats Hammarstedt & Ghazi Shukur, 2009. "Testing the home-country self-employment hypothesis on immigrants in Sweden," Applied Economics Letters, Taylor & Francis Journals, vol. 16(7), pages 745-748.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lina Aldén & Spencer Bastani & Mats Hammarstedt & Chizheng Miao, 2022. "Immigrant-native differences in long-term self-employment," Small Business Economics, Springer, vol. 58(3), pages 1661-1697, March.
    2. Mats Hammarstedt & Chizheng Miao, 2020. "Self-employed immigrants and their employees: evidence from Swedish employer-employee data," Review of Economics of the Household, Springer, vol. 18(1), pages 35-68, March.
    3. Hammarstedt, Mats & Skedinger, Per, 2024. "Immigrant Self-employment in Turbulent Times: A Decade with Refugee Crisis and the COVID-19 Pandemic," Working Paper Series 1497, Research Institute of Industrial Economics.
    4. Aldén, Lina & Hammarstedt, Mats & Miao, Chizheng, 2020. "Financial Capital and Immigrant Self-Employment: Evidence from a Swedish Reform," Working Paper Series 1359, Research Institute of Industrial Economics.
    5. Elert, Niklas & Lundin, Erik, 2020. "Gender and Climate Action," Working Paper Series 1332, Research Institute of Industrial Economics, revised 18 Feb 2022.
    6. Ahmed, Ali & Hammarstedt, Mats, 2018. "Customer Discrimination in the Fast Food Market? Experimental Evidence from a Swedish University Campus," Working Paper Series 1232, Research Institute of Industrial Economics.
    7. Lina Aldén & Mats Hammarstedt, 2016. "Discrimination in the Credit Market? Access to Financial Capital among Self-employed Immigrants," Kyklos, Wiley Blackwell, vol. 69(1), pages 3-31, February.
    8. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    9. Lina Andersson & Mats Hammarstedt & Shakir Hussain & Ghazi Shukur, 2013. "Ethnic origin, local labour markets and self-employment in Sweden: a multilevel approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(3), pages 885-910, June.
    10. Emma Neuman, 2021. "Performance and job creation among self-employed immigrants and natives in Sweden," Small Business Economics, Springer, vol. 56(1), pages 403-425, January.
    11. Lina Aldén & Spencer Bastani & Mats Hammarstedt, 2021. "Ethnic Background and the Value of Self‐Employment Experience: Evidence from a Randomized Field Experiment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(6), pages 1287-1310, December.
    12. Lina Andersson & Mats Hammarstedt, 2011. "Transmission of self-employment across immigrant generations: the importance of ethnic background and gender," Review of Economics of the Household, Springer, vol. 9(4), pages 555-577, December.
    13. Robert W. Fairlie & Alicia M. Robb, 2008. "Race and Entrepreneurial Success: Black-, Asian-, and White-Owned Businesses in the United States," MIT Press Books, The MIT Press, edition 1, volume 1, number 026206281x, April.
    14. Jan Wiers & Didier Chabaud, 2022. "Bibliometric analysis of immigrant entrepreneurship research 2009–2019," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 441-464, December.
    15. Vladasel, Theodor & Lindquist, Matthew J. & Sol, Joeri & van Praag, Mirjam, 2021. "On the origins of entrepreneurship: Evidence from sibling correlations," Journal of Business Venturing, Elsevier, vol. 36(5).
    16. Monica Fisher & Paul A. Lewin, 2018. "Push and pull factors and Hispanic self-employment in the USA," Small Business Economics, Springer, vol. 51(4), pages 1055-1070, December.
    17. Mats Hammarstedt, 2006. "The predicted earnings differential and immigrant self-employment in Sweden," Applied Economics, Taylor & Francis Journals, vol. 38(6), pages 619-630.
    18. 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.
    19. Lina Andersson & Mats Hammarstedt, 2010. "Intergenerational transmissions in immigrant self-employment: Evidence from three generations," Small Business Economics, Springer, vol. 34(3), pages 261-276, April.
    20. Mark Granberg & Niklas Ottosson & Ali Ahmed, 2020. "Do ethnicity and sex of employers affect applicants’ job interest? An experimental exploration," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-10, December.

    More about this item

    Keywords

    Self-employment; Immigration; Integration; Long-term; survey;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:iuiwop:1361. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Elisabeth Gustafsson (email available below). General contact details of provider: https://edirc.repec.org/data/iuiiise.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.