Self-employed immigrants and their employees: evidence from Swedish employer-employee data

We present a study of the employees of self-employed immigrants with unincorporated firms in Sweden using matched employer-employee data from 2014. Non-European immigrants are more likely than natives to have employees in their firms. Furthermore, immigrants, especially non-European immigrants, are more likely than natives to employ immigrants in their firms, and non-European immigrants are most likely to employ recently arrived non-European immigrants with low education in their firms. Males are more likely than females to have employees in their firms, but self-employed females are more likely than self-employed males to have female employees. This is the case for all immigrant groups as well as for natives. We conclude that self-employed immigrants play a role in the labour market integration process since they create employment opportunities for immigrant groups that have difficulty entering the labour market.

     

The Times They Are A‐Changin’: Declining Immigrant Employment Opportunities in Scandinavia1

This article compares and contrasts male immigrant labor market experiences in Sweden and Denmark during the period 1985–1995. Using register‐based panel data sets from Sweden and Denmark, a picture of the employment assimilation process of immigrants from Norway, Poland, and Turkey is presented. The comparative approach shows that immigrants in Sweden and Denmark experienced similar declines in employment prospects between 1985 and 1995 despite quite different developments of aggregate labor market conditions. A possible explanation is that the changing organizational structure – toward more flexible work organization – has resulted in a decrease in the attractiveness of immigrant employees due to the increasing importance of country‐specific skills and informal human capital.     

Immigrants and Employer-provided Training

Much has been written about the labour market outcomes for immigrants in their host countries, particularly with regard to earnings, employment and occupational attainment. However, much less attention has been paid to the question of whether immigrants are as likely to receive employer-provided training relative to comparable natives. As such training should be crucial in determining the labour market success of immigrants in the long run it is a critically important question. Using data from a large-scale survey of employees in Ireland, we find that immigrants are less likely to receive training from employers, with immigrants from the New Member States of the EU experiencing a particular disadvantage. The immigrant training disadvantage arises in part from a failure on the part of immigrants to get employed by training-oriented firms. However, they also experience a training disadvantage relative to natives within firms where less training is provided.     

Labour Market Disadvantages of Second‐Generation Turks and Moroccans in the Netherlands: Before and during the Great Recession

This study uses two waves of panel data to examine the labour market integration of children of Moroccan and Turkish immigrants in the Netherlands. The data show a persisting educational attainment gap in terms of high school completion and post‐secondary attendance. The analyses of prime working‐age respondents indicate substantial ethnic penalties that accrue from the hiring process: controlling for educational background and demographics, the youngest cohort of the second generation is less likely to have employment than the native Dutch. We improve on earlier research on ethnic penalties in the Dutch labour market by including measures of precarious work – the chance of avoiding of non‐contracted work – and by comparing minorities’ standing in a pre‐recession (2009) and a peak‐recession (2013) labour market. The results indicate increasing employment disadvantages for both second‐generation groups at a time of labour surplus.     

Why Third World urban employers usually prefer men

Males outnumber female employees by 3 to 1 in the modern sector of developing countries; moreover, women tend to be concentrated in a limited number of occupations. This underrepresentation of women in employment in Third World countries is generally attributed to the restricted supply of qualified women willing and able to work away from home in modern sector occupations. However, this approach pays insufficient attention to the demand for labor and the recruitment policy of employers. Employer concerns and perceptions that limit the overall demand for women workers and thereby reduce their employment opportunities include the need for pregnancy and maternity leave and protection, absenteeism, turnover, and cultural restrictions. Among the factors that contribute to the sexual segmentation of the labor market are protective legislation that excludes women from certain sectors of the labor market, sex-typing of jobs, and employer perceptions that women lack muscular strength, are not effective supervisors, and cannot work well with men. At the same time, women are preferred for certain jobs because of their greater docility, acceptance of lower wages, household-type skills, and sex appeal. The general factor limiting employment opportunities for women is the employer's perception that women are more costly and less productive than male employees. This perception is directly related to women's role in childbearing and rearing, and is reinforced by legislation that places the costs of maternity leave, nursing breaks, and child care directly on the employer. Thus, women's childbearing and family responsibilities not only limit their availability for work but also discourage employers from hiring them.     

Ethnic Enclaves,Networks and Self‐Employment among Middle Eastern Immigrants in Sweden

The proportion of immigrants from countries in the Middle East living in Sweden has increased since the 1970s, and it is a well‐known fact that immigrants from the Middle East suffer from low earnings and high rates of unemployment on the Swedish labour market. There are often great hopes that self‐employment will enable immigrants to improve their labour market situation. Further, in Sweden as in many other countries, the question of whether the existence of ethnic enclaves are good or bad for immigrants’ earnings and employment opportunities has also been widely debated. This paper presents a study of the extent to which Middle Eastern ethnic enclaves and networks in Sweden enhance or hinder immigrants’ self‐employment. The results show that the presence of ethnic enclaves increases the propensity for self‐employment. Thus, immigrants in ethnic enclaves provide their co‐ethnics with goods and services that Swedish natives are not able to provide. The results also show that ethnic networks seem to be an obstacle to immigrant self‐employment. One explanation is that an increase in network size implies increased competition for customers among self‐employed immigrants. The question of whether ethnic enclaves are good or bad for the integration of immigrants into the labour market has been widely debated. The results of this paper provide us with information about the integration puzzle. Ethnic enclaves seem to enhance self‐employment propensities among Middle Eastern immigrants in Sweden.     

Trapped in the Working Class? Prospects for the Intergenerational (Im)Mobility of Latino Youth

Opportunities for upward mobility have been declining in the United States in recent decades. Within this context, I examine the mobility trajectories of a contemporary cohort of 1.5‐, second‐, and third‐plus‐generation Latino youth. Drawing on survey data from California that accounts for the precarious legal status of many 1.5 generation immigrants, I find that Latino youths' patterns of postsecondary enrollment and employment do not differ by generation since migration. Additionally, I do not find evidence of racial/ethnic barriers to Latino youths' enrollment in less selective colleges and participation in the labor market. Yet, given the low socioeconomic origins of many Latino youth and their correspondingly low 4‐year college enrollment rates, only a small proportion will likely enjoy upward mobility through jobs that require a bachelor's degree. Overall, the cohort of Latino youth coming of age during the Great Recession is poised to experience working‐class stagnation. This group's future access to economic and political positions of power will likely be limited by their low enrollment rates in 4‐year colleges in general, but in selective postsecondary institutions in particular.     

Strong Ties,Weak Ties,and Human Capital: Latino Immigrant Employment Outside the Enclave*

Abstract This study focuses on the role of social ties and human capital in the integration of Latino immigrants into the local economy. This analysis extends earlier research by focusing on more rural contexts with limited labor‐market opportunities and less access to social resources provided by coethnics. We reconsider conclusions of previous studies by focusing on areas with limited labor‐market opportunities and less access to resources provided by coethnics. Using data from in‐depth interviews, focus‐group discussions, and surveys of former farmworkers in five rural communities in New York, we consider how individuals move from agricultural to other types of employment. Multinomial logit and ordinary least squares regression analyses confirm indications from our qualitative data that strong social ties, weak ties, and human capital all play distinctive parts in the economic integration of immigrants outside the ethnic enclave. These resources have the most positive impact on incomes when they contribute to the immigrants' self‐reliance in finding employment. This finding is consistent with observations from the social‐network literature that those who are less reliant on strong social ties are better able to take advantage of a broader range of labor‐market opportunities.     

Laboring Underground: The Employment Patterns of Hispanic Immigrant Men in Durham, NC

The dramatic increase in Hispanic immigration to the United States in recent decades has been coterminous with fundamental shifts in the labor market towards heightened flexibility, instability, and informality. As a result, the low-wage labor market is increasingly occupied by Hispanic immigrants, many of whom are undocumented. While numerous studies examine the implications for natives' employment prospects, our understanding of low-wage immigrants themselves remains underdeveloped. Drawing on original data collected in Durham, North Carolina, this article provides a more holistic account of immigrant Hispanic's labor market experiences, examining not only wages but also employment instability and benefit coverage. The analysis evaluates the role of human capital and immigration characteristics, including legal status, in shaping compensation outcomes, as well as the influence of other employment characteristics. Findings highlight the salience of nonstandard work arrangements such as subcontracting and informal employment to the labor market experiences of immigrant Hispanic men, and describe the constellation of risk factors that powerfully bound immigrant employment outcomes. Keywords: Hispanic; immigration; wages; low-wage labor market; employment relations.     

The Impact of Legal Status on Immigrants’ Earnings and Human Capital: Evidence from the IRCA 1986

The Immigration Reform and Control Act (IRCA), the largest amnesty in U.S. history, took effect in 1986 and legalized all immigrants who arrived before 1982. The IRCA creates a discontinuity, according to the year of entry, in the probability of having legal status. Therefore, I use the regression discontinuity approach to study the impact of legality on immigrants’ labor market outcomes and human capital. Using Californian Latino immigrants from Census 1990, I find that the 1975–81 arrivals, on average, outperform the 1982–86 arrivals in male wages, female employment probability, and male English-speaking ability. These findings are not due to a general trend in U.S. labor market conditions because the same analysis, using refugees, Puerto Rican migrants and U.S.-born Latinos—three comparison groups without legality issues—indicates no difference in outcomes between the 1975–81 and 1982–86 cohorts. However, the advantage of Latino immigrants of the earlier cohort over the later cohort diminishes in Census 2000.     

The industrial division of labor among immigrants and internal migrants to the Los Angeles economy

This study examined the industrial division of labor among immigrants and in-migrants in the Los Angeles, California, metropolitan area. It addresses debates about channeling of new arrivals into jobs among similar ethnic groups and human capital views. Data were obtained from the 1990 Census on resident native-born, resident foreign-born, in-migrants, and recent immigrants who arrived during 1985-90. Light and Rosenstein's (1995) concepts of groups and their resources were used to organize ideas about ethnic networks and their effectiveness in channeling migrant workers into 15 industrial sectors. Sectoral differences were revealed with the familiarity index of dissimilarity. Findings reveal that social networks were the strongest for Koreans, who supplied work for recent arrivals in the same sectors as Korean-born residents, regardless of education. Mexican new arrivals were less likely to work in the same sectors as their resident Mexican counterparts. Mexican networks placed new arrivals in durable manufacturing in the 1960s and 1970s when it was a key source of employment. By the 1980s and 1990s, the economy shifted and employment went down in durable manufacturing. Mexicans thus found employment elsewhere. Native White and Black in-migrants had the strongest channeling into same sector jobs. This is attributed to the small streams, the ability of the labor market to absorb these workers, and the availability of job vacancies among native out-migrants. Filipino migrants had similar patterns as Whites and Blacks. Mexican and Central American residents had more inter-ethnic competition over jobs than Whites or Blacks.     

The role of foreign workers in the seasonal fluctuations of the French economy

The few studies that have been carried out only take into account the annual inflows of seasonal immigrants. This present article covers 2 other aspects of the problem: 1) the seasonal nature of immigration in general and 2) above all the role of permanent immigrant workers in certain sectors influenced by seasonal changes. The number of permanent first-time immigrants is determined, among other causes, by the need for a certain seasonal regulation of overall economic activity. The role of the foreign work force is o fparticular importance in 3 sectors influenced by seasonal changes, and it fulfills a function of seasonal regulation of activity in at least 2 of these sectors: the building trade and agriculture. However, the recognition of the need for seasonal regulation has been used as a pretext for making employment more unstable, in particular for permanent immigrant workers, many of whom cannot find work for the whole year. Seasonal work also plays a key role in agriculture and the hotel trade. Moreover, the part played by illegal immigrants is decisive, not only in these 2 sectors, but throughout the illegal labor market. In the years to come it is likely that seasonal immigration will continue to fall perhaps by half, as a result of mechanization in general, its application in grape-harvesting, and the adoption of new farming techniques. However, it will probably remain sufficiently high to make up for the lack of a national reserve of seasonal labor, especially in vegetable and fruit farming, lumbering, and catering. Seasonal immigration will doubtlessly continue also because it puts a downward pessure on the average wage and makes employment more precarious. It also constitutes a reserve of illegal labor, which can be used in sectors which have a crucial impact on the balance of goods and services in France. These advantages for the French government and employers are above all disadvantages for the seasonal immigrant workers themselves, whose living and health conditions are increasingly catastrophic.     

Moving Up in Rural America: Economic Attainment of Nonmetro Latino Immigrants

Rapid Hispanic population growth represents a pronounced demographic transformation in many nonmetropolitan counties, particularly since 1990. Its considerable public policy implications stem largely from high proportions of new foreign‐born residents. Despite the pressing need for information on new immigrants in nonmetro counties and a bourgeoning scholarship on new rural destinations, few quantitative analyses have measured systematically the social and economic well‐being of Latino immigrants. This study analyzes the importance of place for economic well‐being, an important public policy issue related to rural Hispanic population growth. We consider four measures of economic mobility: full‐time, year‐round employment; home ownership; poverty status; and income exceeding the median national income. We conduct this analysis for 2000 and 2006–2007 to capture two salient periods of nonmetro Hispanic population growth, using a typology that distinguishes among nonmetropolitan areas by the categories of “traditional” immigrant destinations concentrated in the Southwest and Northwest, “new” immigrant destinations to capture recent and rapid Hispanic population growth in the Midwest and Southeast, and “all other” rural destinations as a reference category representing more typical nonmetro population trends. We also compare our results to those for metropolitan destinations. We find that place type matters little for stable employment but more so for wealth accumulation and income security and mobility. Compared with urban Latino immigrants, rural Latino immigrants exhibit higher rates of homeownership as well as greater likelihoods of falling into poverty and lower likelihoods of earning a measure of U.S. median income. From 2000 to 2006–2007, rural‐urban differences deteriorated slightly in favor of urban areas. We conclude by discussing implications of these findings and those of addressing rural immigrant economic well‐being more generally.     

The economic role of immigrant wives in Hong Kong

The objectives of this study were to compare the employment pattern of immigrant wives with native-born wives in Hong Kong, to examine the independent influences of sociodemographic characteristics and the assimilation experience on employment behavior of immigrant wives, and to establish the extent to which immigrant wives' employment is affected by social and demographic factors and conditioned on the assimilation strategy adopted by their families. Data of the 1986 census were used, based on a 1% sample of currently married women 20-44 years old. 5478 women were identified by place of birth and length of residence in Hong Kong and 3214 native-born women were used as a comparison group. Of this 5478, 2018 women were earlier immigrants from mainland China who had lived in Hong Kong for more than 5 years and 246 were recent Chinese immigrants. Labor force participation of the native born was 51.87% and that of China born was 48.89%, however, early immigrants had a rate of participation of 46.84% and recent immigrants had 66.81%. The labor market incorporation of early immigrants showed that 10.28% were self-employed and 13.13% were outworkers, which was in contrast to the native-born, who were more represented in employee occupations. 79.12% of native-born were wage employees compared 69.58% of early immigrants. Immigrant wives were disadvantaged regarding education and vocational training; their wages were substantially lower than those of the native-born women. Immigrant families had an average of 2.2 children, compared to 1.7 for natives. Logit analysis showed that age had a negative relationship with labor force participation, while education had a positive effect, and recent immigrants had a significantly higher labor force participation. Multinominal logit analysis found that more educated and better skilled women were significantly more likely to engage in wage employment. Children in the family restricted women's participation in wage employment.     

Decoding Worker “Reliability”: Modern Agrarian Values and Immigrant Labor on New York Dairy Farms

This article examines the reasons offered by New York dairy farmers for hiring undocumented immigrant workers in their milking parlors, and connects those discourses to broader economic and cultural change in U.S. agrarian society. Based on interviews with 25 dairy farmers on 22 farms, this article examines farmers’ assessments of the Amish, white non‐Amish, Puerto Rican, and undocumented Latino labor pool. The analysis shows that farmers consider undocumented immigrants the most “reliable” workforce, and that their reliability stems from their deportability and from their separation from their families, which drives them to work long hours. I argue that farmer discourses about immigrant “reliability” must be understood in the context of economic pressure to adopt a more commercial orientation to dairying, and of modern agrarian values that prize urban middle‐class lifestyles. Ultimately, worker “reliability” is a euphemism for the transnational separation of workers from their families, and one that is operationalized by farmers to justify the pursuit of economic success and more leisure time off the farm.     

Labor Market Information and Selection in a Local Restaurant Industry: The Tenuous Balance Between Rewards,Commitments, and Costs

The restaurant industry is characterized as having high turnover, skill homogeneity, and distrust of standard sources of labor market information. We examine how in this context employers seek and evaluate information on potential job candidates (extensive search) and the hiring criteria they use to select new employees (intensive search). We find that employers in the restaurant sector are often passive or reactive about recruitment, distrust standard sources of information, and reject the use of educational credentials and work experience as hiring criteria. They do, however, find ways to signal workplace information to potential job candidates, develop schemes to gather reliable information, and closely evaluate job history data when hiring. Some develop signaling strategies to alert potential employees that their stores are sufficiently different from apparently similar stores to make them unusually attractive places to work. To help secure a sufficiently motivated work force, managers eschew standard measures of potential productive capacity or skills and adopt instead indicators of a modicum of employee motivation. Even under conditions of high turnover, skill homogeneity, and distrusted information, employers find ways to secure effort and commitment from potentially recalcitrant employees.     

The making of an immigrant niche

"This article speaks to the conceptual and methodological issues in research on the making of an immigrant niche through a case study of immigrant professionals in New York City government." The author argues that "the growth of this immigrant niche resulted from changes in the relative supply of native workers and in the structure of employment, which opened the bureaucracy to immigrants and reduced native/immigrant competition. These shifts opened hiring portals; given the advantages of network hiring for workers and managers, and an immigrant propensity for government employment, network recruitment led to a rapid buildup in immigrant ranks."     

From Social Capital to Inequality: Migrant Networks in Different Stages of Labor Incorporation

How does social capital vary in the distinct stages (prehiring, hiring, and posthiring) of labor incorporation? Based on interviews with 71 Latino migrant workers engaged in residential construction in Las Vegas, Nevada, and 30 transnational migrants who returned to Mexico after working in the United States, I examined two primary issues: first, the structural labor mechanisms that create hyperexploitation, and second, how, in turn, such processes shape social capital. I discovered, at the prehiring phase, social networks connected to subcontractors and those who attempt to form a labor crew function as social capital, despite what may appear to be bonded labor. At the hiring stage, social capital continues to play a role, yet posthiring labor structures create hyperexploitation and immigrants experience inequality in social capital. In such contexts, undocumented Latinos are unable to retain their social capital as U.S. labor structures such as subcontracting and piece‐rate compensation lead to the subjugation of workers, who can become “ghost workers” and bonded laborers. I conclude that in the posthiring stage, such labor structures create what Lin (2000, 2001) refers to as capital deficit and return deficit in social capital that greatly limit the economic incorporation of Latino immigrants.     

Self determination theory and employed job search

Self Determination Theory (SDT) predicts that employees who use controlled motivation to search for alternate (better) work are less successful than their counterparts who use autonomous motivation. Using Australian labour market data, we find strong support for SDT. We find that workers who face externally regulated pressures (pressure arising from involuntary part-time or casual labour contracts) to search for alternate employment are less likely to find better work, than workers who use autonomous motives to search for work. Our findings suggest that labour market policies trending towards ‘labour market flexibility/deregulation’ – which provide workers with controlled motives to search for work – will contribute to workers cycling through spells of insecure employment and possibly intermittent spells of unemployment with no realistic prospect of career development.     

Finding an Adequate Job: Employment and Income of Recent Immigrants to Israel

The study examines the early market experience of recent immigrants to Israel from the former Soviet Union (FSU) and their mobility patterns a few years after migration. The Labour Utilization Framework, proposed by Clogg and Sullivan (1983), was analysed to identify the employment difficulties immigrants experienced upon arrival, their short‐term mobility in the labour market, and the income consequences of their disadvantaged position in the market. Using a panel study of immigrants who arrived in Israel during 1990, we found that although most of them found employment, only a minority did not experience employment hardships. Four years after their arrival, most immigrants were still employed in occupations for which they were over‐qualified, and only a small portion of the group managed to find adequate employment. Women had more severe employment hardships and a lower rate of mobility into the better positions. For men and women alike, almost any deviation from a stable adequate employment entailed wage penalties.