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Self-Employment among Immigrants: A Last Resort?

Author

Listed:
  • Kræn Blume Jensen

    (Aarhus School of Business)

  • Mette Ejrnæs

    (Institute of Economics, University of Copenhagen)

  • Helena Skyt Nielsen

    (Aarhus School of Business)

  • Allan Würtz

    (Department of Economics, University of Aarhus)

Abstract

Based on unique register data of male immigrants in Denmark, we investigate whether self-employment is used as a last resort. To identify self-employment as a last resort, we define different types of immigrants as a function of transition probabilities between wage-employment, non-employment and self-employment. The transition probabilities are estimated using discrete competing risks models controlling for unobserved heterogeneity and duration dependence. We find that for certain groups of immigrants a large fraction can be characterized as using self-employment as a last resort.

Suggested Citation

  • Kræn Blume Jensen & Mette Ejrnæs & Helena Skyt Nielsen & Allan Würtz, 2003. "Self-Employment among Immigrants: A Last Resort?," CAM Working Papers 2003-08, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    • Handle: RePEc:kud:kuieca:2003_08
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    File URL: http://www.econ.ku.dk/cam/wp0910/wp0203/2003-08.pdf/
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    References listed on IDEAS

    as
    1. Svarer, Michael, "undated". "Determinants of Divorce in Denmark," Economics Working Papers 2002-19, Department of Economics and Business Economics, Aarhus University.
    2. Skott, Peter, 2005. "Fairness as a source of hysteresis in employment and relative wages," Journal of Economic Behavior & Organization, Elsevier, vol. 57(3), pages 305-331, July.
    3. Andersen, Torben M., "undated". "The Macroeconomic Policy Mix in a Monetary Union with Flexible Inflation Targeting," Economics Working Papers 2003-2, Department of Economics and Business Economics, Aarhus University.
    4. Holler, Manfred & Skott, Peter, "undated". "The importance of setting the agenda," Economics Working Papers 2003-8, Department of Economics and Business Economics, Aarhus University.
    5. Dell'Anno, Roberto, "undated". "Estimating the Shadow Economy in Italy: a Structural Equation Approach," Economics Working Papers 2003-7, Department of Economics and Business Economics, Aarhus University.
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    Citations

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    Cited by:

    1. Andersson Joona, Pernilla & Wadensjö, Eskil, 2004. "Other Forms of Employment: Temporary Employment Agencies and Self-Employment," IZA Discussion Papers 1166, Institute of Labor Economics (IZA).
    2. Shashwati Banerjee & Kishor Goswami, 2020. "Self-employed or Paid Employed: Who can Earn more among the Slum Dwellers and Why?," Progress in Development Studies, , vol. 20(1), pages 7-25, January.
    3. Andersson Joona, Pernilla & Wadensjö, Eskil, 2004. "Self-Employed Immigrants in Denmark and Sweden: A Way to Economic Self-Reliance?," IZA Discussion Papers 1130, Institute of Labor Economics (IZA).
    4. Constant, Amelie F. & Zimmermann, Klaus F., 2004. "Self-Employment Dynamics Across the Business Cycle: Migrants Versus Natives," IZA Discussion Papers 1386, Institute of Labor Economics (IZA).
    5. Blume, Kraen & Verner, Mette, 2007. "Welfare dependency among Danish immigrants," European Journal of Political Economy, Elsevier, vol. 23(2), pages 453-471, June.
    6. Guangzhong Cao & Ming Li & Yan Ma & Ran Tao, 2015. "Self-employment and intention of permanent urban settlement: Evidence from a survey of migrants in China’s four major urbanising areas," Urban Studies, Urban Studies Journal Limited, vol. 52(4), pages 639-664, March.
    7. Millán, José María & Congregado, Emilio & Román, Concepción, 2014. "Persistence in entrepreneurship and its implications for the European entrepreneurial promotion policy," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 83-106.
    8. José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.
    9. Biffl, Gudrun, 2006. "Towards a common migration policy : potential impact on the EU economy," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(1), pages 7-23.

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    More about this item

    Keywords

    discrete competing risks; duration; random effects; self-employment;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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