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Immigrant Entrepreneurship in Finland

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  • Fornaro, Paolo

Abstract

Immigrant entrepreneurship is the subject of a prolific economic literature, as well as a source of wide public debate. This is because the participation of immigrants to the business community can provide a significant contribution to innovation and to market dynamics. This report touches multiple aspects of immigrant entrepreneurship in Finland, looking at the years from 2006 to 2014. I find that while the number of self-employed immigrants has increased dramatically, the entrepreneurial rate has been stable. Moreover, the immigrant self-employment rate is similar to the one of natives. I find that the median earnings of foreign entrepreneurs are lower than the ones of Finnish entrepreneurs, but this is driven by the different industry distribution. Finally, I find an overrepresentation of foreign workers and entrepreneurs in the Helsinki region, while the immigrants’ self-employment rate is higher in poorer areas. I gather multiple evidence pointing toward the fact that difficulties in the job market push foreign residents to self-employment. For example, I find a negative correlation between the employment rate and the foreign share of entrepreneurial inflows, and a strong negative relationship between the employment rate and the immigrant self-employment rate at the regional level.

Suggested Citation

  • Fornaro, Paolo, 2018. "Immigrant Entrepreneurship in Finland," ETLA Reports 83, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:83
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    References listed on IDEAS

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    6. Bosetti, Valentina & Cattaneo, Cristina & Verdolini, Elena, 2015. "Migration of skilled workers and innovation: A European Perspective," Journal of International Economics, Elsevier, vol. 96(2), pages 311-322.
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    Cited by:

    1. Katja Çilenti & Shadia Rask & Marko Elovainio & Eero Lilja & Hannamaria Kuusio & Seppo Koskinen & Päivikki Koponen & Anu E. Castaneda, 2021. "Use of Health Services and Unmet Need among Adults of Russian, Somali, and Kurdish Origin in Finland," IJERPH, MDPI, vol. 18(5), pages 1-21, February.

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    More about this item

    Keywords

    Immigrants; Self-employment; Earnings differentials;
    All these keywords.

    JEL classification:

    • 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
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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