Self-Employment Differentials among Foreign-Born STEM and Non-STEM Workers

Arbeitspapier

This paper uses the American Community Survey to examine the previously overlooked fact that foreign STEM (science, technology, engineering, and mathematics) graduates have much lower self-employment rates than their non-STEM counterparts, with an unconditional difference of 3.3 percentage points. We find empirical support for differing earnings opportunities as a partial explanation for this self-employment gap. High wages in STEM paid-employment combined with reduced earnings in self-employment make self-employment less desirable for STEM graduates. High self-employment rates among other foreign-born workers partially reflect weak paid-employment opportunities. Public policy should encourage efficient use of worker skills rather than low-value business venture creation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: GLO Discussion Paper ; No. 49

Classification and Topics

• Classification: Wirtschaft ; International Migration ; Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination ; Wage Level and Structure; Wage Differentials ; Entrepreneurship
• Subject: self-employment ; immigration ; foreign-born ; college major ; STEM ; earnings

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cai, Zhengyu ; Winters, John V.
• Event: Veröffentlichung
• (who): Global Labor Organization (GLO)
• (where): Maastricht
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/156416
• Last update: 10.03.2025, 11:41 AM CET