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

Magdalena Ulceluse

No 219, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: The paper investigates whether self-employment represents a way to reduce overeducation and improve labour market matching, 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, I find 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 labour 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: self-employment; immigrants; skills mismatch; overeducation (search for similar items in EconPapers)
JEL-codes: J15 J24 J61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-lab, nep-mig and nep-ure
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:219

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