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The employees of native and immigrant self-employed

In: Ethnicity and Labor Market Outcomes

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  • Pernilla Andersson Joona
  • Eskil Wadensjö

Abstract

Using unique register data for Sweden we match self-employed persons to their employees. The purpose of the paper is to investigate which factors that influence the composition of the workforce in terms of national background. To analyse workforce composition we estimate the probability of only employing co-nationals in the firm. A majority of the self-employed do not have employees so the used sample constitutes a small share of all self-employed. To account for the selection in the choice of having employees we estimate a selection model of Heckman type. We find that a higher share of immigrants in the municipality increases the probability of hiring immigrants, both for native and immigrant self-employed. We also find that the probability for immigrants to only employ co-nationals decreases with time spent in Sweden. These results point to that the proximity to people from the same region and one's network plays an important part for the employment decisions for the self-employed.

Suggested Citation

  • Pernilla Andersson Joona & Eskil Wadensjö, 2009. "The employees of native and immigrant self-employed," Research in Labor Economics, in: Ethnicity and Labor Market Outcomes, pages 229-250, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-9121(2009)0000029011
    DOI: 10.1108/S0147-9121(2009)0000029011
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    References listed on IDEAS

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    1. Carlsson, Magnus & Rooth, Dan-Olof, 2007. "Evidence of ethnic discrimination in the Swedish labor market using experimental data," Labour Economics, Elsevier, vol. 14(4), pages 716-729, August.
    2. Harry J. Holzer, 1998. "Why Do Small Establishments Hire Fewer Blacks Than Large Ones?," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 896-914.
    3. Holzer, Harry J. & Reaser, Jess, 2000. "Black Applicants, Black Employees, and Urban Labor Market Policy," Journal of Urban Economics, Elsevier, vol. 48(3), pages 365-387, November.
    4. Timothy Bates, 1994. "Utilization of minority employees in small business: A comparison of nonminority and black-owned urban enterprises," The Review of Black Political Economy, Springer;National Economic Association, vol. 23(1), pages 113-121, June.
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    Cited by:

    1. Klaus Nowotny, 2011. "Welfare Magnets, Taxation and the Location Decisions of Migrants to the EU," WIFO Working Papers 393, WIFO.
    2. Peter Huber & Klaus Nowotny & Julia Bock-Schappelwein, 2010. "Qualification Structure, Over- and Under-qualification of the Foreign Born in Austria and the EU," WIFO Studies, WIFO, number 41226, April.
    3. Skrzek-Lubasińska, Małgorzata & Szaban, Jolanta M., 2019. "Nomenclature and harmonised criteria for the self-employment categorisation. An approach pursuant to a systematic review of the literature," European Management Journal, Elsevier, vol. 37(3), pages 376-386.
    4. repec:wsr:ecbook:2010:i:ii-008 is not listed on IDEAS
    5. Klaus Nowotny & Dieter Pennerstorfer, 2011. "Ethnic Networks and the Location Choice of Migrants in Europe," WIFO Working Papers 415, WIFO.
    6. Haans, Richard F.J. & van den Oever, Koen, 2021. "Foreign entrepreneurs engage in less misconduct than native entrepreneurs: Evidence from U.K. director disqualifications," Journal of Business Venturing Insights, Elsevier, vol. 16(C).

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    More about this item

    JEL classification:

    • 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

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