Self-employment as a stepping stone to better labor market matching: a comparison between immigrants and natives

Magdalena Ulceluse

JODE - Journal of Demographic Economics, 2020, vol. 86, issue 4, 479-501

Abstract: The paper investigates the relation between overeducation and self-employment, in a comparative analysis between immigrants and natives. Using the EU Labour Force Survey for the year 2012 and controlling for a list of demographic characteristics and general characteristics of 30 destination countries, it finds that the likelihood of being overeducated decreases for self-employed immigrants, with inconclusive results for self-employed natives. The results shed light on the extent to which immigrants adjust to labor market imperfections and barriers to employment and might help explain the higher incidence of self-employment that immigrants exhibit, when compared to natives. This is the first study to systematically study the nexus between overeducation and self-employment in a comparative framework. Moreover, the paper tests the robustness of the results by employing two different measures of overeducation, contributing to the literature of the measurement of overeducation.

Keywords: Immigrants; Overeducation; Self-Employment; Skills mismatch (search for similar items in EconPapers)
JEL-codes: J15 J24 J61 (search for similar items in EconPapers)
Date: 2020-12-01
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Citations: View citations in EconPapers (1)

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Journal Article: Self-employment as a stepping stone to better labor market matching: a comparison between immigrants and natives (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvde:v:86:y:2020:i:4:p:479-501

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