Arbeitspapier

Labor Market Assimilation and the Self- Employment Decision of Immigrant Entrepreneurs

This paper uses data from the 1980 and 1990 U.S. Censuses to study labor market assimilation of self-employed immigrants. Separate earnings functions for the self-employed and wage/salary workers are estimated. To control for endogenous sorting into the sectors, models of the self-employment decision are estimated. Variables for the proportion of immigrants in the population and average earnings ratios are used as instruments to control for self-selection into self-employment and consequently identify the inverse Mills correction term in the earnings models. Self-employed immigrants do substantially better in the labor market than wage/salary immigrants. Earnings of self-employed immigrants are predicted to converge with natives? wage/salary earnings at about age 30 and natives? self-employed earnings at about age 40. Including the self-employed in the sample reduces the immigrantnative earnings gap by, on average, roughly 14 percent.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 54

Klassifikation
Wirtschaft
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Geographic Labor Mobility; Immigrant Workers
Labor Demand
Thema
Immigration
assimilation
self-employment
Einwanderung
Migranten
Arbeitsangebot
Selbstständige
Unternehmer
Einkommensverteilung
Soziale Integration
Schätzung
USA

Ereignis
Geistige Schöpfung
(wer)
Lofstrom, Magnus
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
1999

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Lofstrom, Magnus
  • Institute for the Study of Labor (IZA)

Entstanden

  • 1999

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