EconPapers    
Economics at your fingertips  
 

Self-employment differentials among foreign-born STEM and non-STEM workers

Zhengyu Cai and John V. Winters

Journal of Business Venturing, 2017, vol. 32, issue 4, 371-384

Abstract: 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.

Keywords: Self-employment; Immigration; Foreign-born; College major; STEM; Earnings (search for similar items in EconPapers)
JEL-codes: F22 J15 J31 L26 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0883902616300556
Full text for ScienceDirect subscribers only

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:eee:jbvent:v:32:y:2017:i:4:p:371-384

Access Statistics for this article

Journal of Business Venturing is currently edited by S. Venkataraman

More articles in Journal of Business Venturing from Elsevier
Series data maintained by Dana Niculescu ().

 
Page updated 2017-10-01
Handle: RePEc:eee:jbvent:v:32:y:2017:i:4:p:371-384