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
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)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:32:y:2017:i:4:p:371-384
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