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Self-employed immigrants and their employees: evidence from Swedish employer-employee data

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  • Mats Hammarstedt

    (Linnaeus University)

  • Chizheng Miao

    (Linnaeus University)

Abstract

We present a study of the employees of self-employed immigrants with unincorporated firms in Sweden using matched employer-employee data from 2014. Non-European immigrants are more likely than natives to have employees in their firms. Furthermore, immigrants, especially non-European immigrants, are more likely than natives to employ immigrants in their firms, and non-European immigrants are most likely to employ recently arrived non-European immigrants with low education in their firms. Males are more likely than females to have employees in their firms, but self-employed females are more likely than self-employed males to have female employees. This is the case for all immigrant groups as well as for natives. We conclude that self-employed immigrants play a role in the labour market integration process since they create employment opportunities for immigrant groups that have difficulty entering the labour market.

Suggested Citation

  • 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.
  • Handle: RePEc:kap:reveho:v:18:y:2020:i:1:d:10.1007_s11150-019-09446-1
    DOI: 10.1007/s11150-019-09446-1
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    Cited by:

    1. Bastani, Spencer & Giebe, Thomas & Miao, Chizheng, 2020. "Ethnicity and tax filing behavior," Journal of Urban Economics, Elsevier, vol. 116(C).
    2. Chizheng Miao, 2020. "Immigrant self‐employment and local unemployment in Sweden," Manchester School, University of Manchester, vol. 88(3), pages 464-488, June.
    3. Sari Pekkala Kerr & William R. Kerr, 2021. "Whose Job Is It Anyway? Coethnic Hiring in New US Ventures," Journal of Human Capital, University of Chicago Press, vol. 15(1), pages 86-127.
    4. Green, David A. & Liu, Huju & Ostrovsky, Yuri & Picot, Garnett, 2023. "Are Immigrants Particularly Entrepreneurial? Policy Lessons from a Selective Immigration System," IZA Discussion Papers 16515, Institute of Labor Economics (IZA).
    5. Berggren, Niclas & Ljunge, Martin & Nilsson, Therese, 2022. "Immigrants’ Tolerance and Integration into Society," Working Paper Series 1447, Research Institute of Industrial Economics.
    6. 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.
    7. Berggren, Niclas & Ljunge, Martin & Nilsson, Therese, 2023. "Immigrants from more tolerant cultures integrate deeper into destination countries," Journal of Comparative Economics, Elsevier, vol. 51(4), pages 1095-1108.
    8. 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.
    9. Rickne, Johanna, 2021. "Who Cleans My House If the Government Pays? Disadvantaged Labor Market Groups in the Tax-Subsidized Domestic Service Sector," IZA Policy Papers 171, Institute of Labor Economics (IZA).
    10. 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.
    11. 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.
    12. Rickne Johanna, 2021. "Who cleans my house if the government pays? Refugees, low-educated workers, and long-term unemployed in tax-subsidized domestic service firms," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-37, May.

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    More about this item

    Keywords

    Self-employment; Immigrants; Employment; Employees; Sweden;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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