Immigrant-native differences in long-term self-employment

Lina Aldén, Spencer Bastani, Mats Hammarstedt () and Chizheng Miao ()
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Mats Hammarstedt: Department of Economics and Statistics, Linnaeus University, Växjö, Sweden and Research Institute of Industrial Economics (IFN)
Chizheng Miao: Linnaeus University

Small Business Economics, 2022, vol. 58, issue 3, No 23, 1697 pages

Abstract: Abstract We study immigrant-native differences in long-term self-employment in Sweden combining population-wide register data and a unique survey targeting a large representative sample of the total population of long-term self-employment. Using the registers, we analyze the evolution of labor and capital incomes during the first 10 years following self-employment entry. We find that immigrant-native differences in labor income become smaller, whereas immigrant-native differences in capital income grow stronger, over the course of self-employment. These findings are robust to controlling for factors such as organizational form and type of industry. We use the survey data to gain further insights into immigrant-native differences among the long-term self-employed, and show that immigrant self-employed experience more problems and earn less, but work harder than native self-employed. They also have a less personal relation to their customers, do not enjoy their work as much as natives, and appear to have different perspectives on self-employment in general.

Keywords: Self-employment; Immigration; Integration; Long-term; Survey; J15; J24; L26; D31 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s11187-021-00462-z

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