EconPapers    
Economics at your fingertips  
 

The impact of self-employment on the economic integration of immigrants: Evidence from Germany

Jan Brzozowski and Anke Lasek
Additional contact information
Anke Lasek: Cracow University of Economics, Rakowicka 27, 31-510 Kraków, Poland

Journal of Entrepreneurship, Management and Innovation, 2019, vol. 15, issue 2, 11-28

Abstract: Traditional approaches in migration studies suggest that self-employment and entrepreneurial activities enhance the perspectives of economic advancement of immigrants in host countries. Therefore, in many popular destinations in Western Europe and Northern America, policies encouraging the self-employment of immigrants have been proposed. But does the self-employment contribute to the economic integration of immigrants? Is it a universal, one-way avenue that guarantees the successful insertion of foreigners in a new socio-economic environment? Based on the German Socio-Economic Panel dataset, this study empirically investigates the effect of self-employment on the economic integration of immigrants in one of the most important host countries in Europe. Our results demonstrate that the current self-employment status in Germany is associated with higher income in absolute and relative (self-assessment) terms. The immigrants with previous self-employment experience in Germany are less integrated than the average. This result indirectly shows that the business economy of immigrants is associated with a high risk of failure and not all self-employed individuals succeed in advancing in economic terms in a host country. Consequently, we argue that host countries should be more cautious in promoting entrepreneurship as the “perfect” and “universal” strategy that improves economic integration.

Keywords: immigrant self-employment; economic integration; economic activity (search for similar items in EconPapers)
JEL-codes: F22 J24 L26 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://jemi.edu.pl/uploadedFiles/file/all-issues/v ... e2_2019_Article1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aae:journl:v:15:y:2019:i:2:p:11-28

DOI: 10.7341/20191521

Access Statistics for this article

More articles in Journal of Entrepreneurship, Management and Innovation from Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione"
Bibliographic data for series maintained by Anna Ujwary-Gil ().

 
Page updated 2020-02-01
Handle: RePEc:aae:journl:v:15:y:2019:i:2:p:11-28