Performance and job creation among self-employed immigrants and natives in Sweden

Emma Neuman

Small Business Economics, 2021, vol. 56, issue 1, No 19, 403-425

Abstract: Abstract This paper uses individual-level panel data for all self-employed in the retail and service sectors to study how immigrant- and native-owned firms perform and contribute to job creation in Sweden. We use an individual fixed-effects model to explore how self-employment outcomes among immigrants and natives evolve with self-employment experience. The advantage of our approach is that it enables estimations of the returns to self-employment experience while controlling for unobservable time-constant individual factors. The results show that profits increase with self-employment experience and at a faster rate among immigrant men and women than for their native counterparts. Turnover and the likelihood of having employees both increase with experience and in a similar magnitude for immigrants and natives.

Keywords: Immigrant businesses; Job creation; Performance; Self-employment; Self-employment experience (search for similar items in EconPapers)
JEL-codes: J15 J61 L25 L26 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s11187-019-00223-z

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