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.

     

Foreign retirement income among new older immigrants in the United States

Older adults make up an increasing share of new legal immigrants to the United States. These immigrants are often financially dependent on family since they are often barred from receiving several US support programmes and are less likely to receive US retirement benefits than natives. However, little information exists as to whether they receive retirement income from abroad. Using the New Immigrant Survey (N=2,150), we find that only 8.1 per cent of older recent immigrants report receiving foreign retirement income. In logistic modelling, older immigrants from Asia and Latin America were less likely to receive retirement income from abroad than those from Europe (Odds ratio = 0.50, p<0.05; Odds ratio = 0.22, p<0.001, respectively). Results suggest that newly admitted older immigrants from Asia and Latin America face an additional economic disadvantage compared with older Europeans that cannot be attributed to their demographic and migration characteristics.     

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.     

Are Ireland's Immigrants Integrating into Its Labor Market?

Ireland has experienced a remarkable change in its migratory patterns in recent years and has moved from experiencing large‐scale emigration to receiving significant inflows. In this paper, we use data from a nationally representative sample of immigrants and natives drawn in 2005 to assess the occupational attainment of immigrants in Ireland relative to natives. It is found that immigrants, on average, are less likely to be in high‐level occupations controlling for factors such as age and education. When looked at by year of arrival, it appears as if immigrants who arrived more recently have lower occupational attainment relative to earlier arrivals, thereby suggesting a process of integration. However, a closer analysis shows that the observation of better occupational attainment for earlier arrivals can be explained by a change in the national origin mix of Ireland's immigrants, with immigrants from the New Member States of the European Union having the lowest occupational attainment. Within national groups there is generally no clear evidence of improved occupational attainment over time.     

The difference between wages and wage potentials: Earnings disadvantages of immigrants in Germany

Immigrants in Germany have poor earnings performance relative to natives. Claiming that human-capital endowments determine earnings potentials rather than actual earnings, a stochastic earnings frontier is estimated and used to seek systematic differences between natives and migrants for GSOEP data for the year 2000. While empirical results clearly support the frontier assumption, natives and immigrants are surprisingly about the same with respect to the frontier. Assuming a half-normal distribution of the wage gap, on average, both groups transform a modest 84% share of their potential income into market earnings. This implies wage inequality can be attributed to human-capital differentials alone. The human-capital endowments of immigrants are largely determined by the very low percentage who have college degrees, their slow assimilation and zero-return on imported experience. The paper also tries to explain individual wage gaps, which are significantly decreased in married subjects raising families, but increased in employees in small- or medium-sized relative to larger firms. However, these variables only make minor contributions to the variance.     

The effect of immigration on the earnings of native-born workers: Evidence from Australia

No consensus has been reached by previous studies on the impact of immigration on the earnings of natives. Using data from the Australia's 2001 Census of Population and Housing an individual-level earnings function is estimated by including the fraction of immigrants in a given skill group relative to total employment in that skill group as one of the independent variables. Using employees’ occupation and level of education as proxies for skill, the results indicate that generally immigrants have a significant positive effect on earnings of natives. The overall findings suggest that the increase in supply of labour due to immigration is offset by higher demand for labour and hence positive effect on native earnings.     

Exits from Self-Employment: Is There a Native-Immigrant Difference in Sweden?1

It is well established that non-western immigrants in Sweden are more likely to be self-employed than natives. Whether there is also a difference in the exit rate out of self-employment remains an unexplored question. Using panel data for the period 1998–2002, this study analyzes the exit rates by looking at all exits, and also at exits to different labor market states. We find that the exit rate is about 7% points higher among non-western immigrants than among natives and exits to unemployment is 14% points higher. Decomposing these differences, we find that differences in industry and earlier labor market status are important explanatory factors.     

Cultural dissimilarity and intermarriage. a longitudinal study of immigrants in Sweden, 1990–2005

Intermarriage with natives is a key indicator of immigrant integration. This article studies intermarriage for 138 immigrant groups in Sweden, using longitudinal individual level data. It shows great variation in marriage patterns across immigrant populations, ranging from over 70 percent endogamy in some immigrants groups to below 5 percent in other groups. Although part of this variation is explained by human capital and the structure of the marriage market, cultural factors (values, religion, and language) play an important role as well. Immigrants from culturally more dissimilar countries are less likely to intermarry with natives, and instead more prone to endogamy.     

US and them: Job quality differences between natives and immigrants in Europe

Using microdata from the European Union Labour Force Survey (EU-LFS) and aggregate indicators of labour market institutions, this article compares the job quality of native and non-native workers across European countries and analyses the impact of the institutional settings on the job quality differential between both groups. The LFS is used to measure a job quality index for the period 2005–2017. We find that some immigrant groups fare worse than natives, the contribution of the “composition effect” to explain this differential is large, and the institutional framework affects the immigration gap in job quality. In particular, some labour market institutions (more centralized wage bargaining, stricter employment protection legislation) tend to be detrimental for immigrants relative to natives, while integration policies seem to work well in reducing these differences.     

Metropolitan Labour Markets, Peripheral Labour Markets and Socio-economic Outcomes among Immigrants to Israel

This article focuses on the impact of the local opportunity structure on socio‐economic outcomes of recent immigrants to Israel. Specifically, it examines the extent to which metropolitan labour markets versus peripheral labour markets differentially affect socio‐economic incorporation of recent “Russian” immigrants who arrived in Israel after the collapse of the former Soviet Union in 1989. Using the 1995 Israeli Census of Population, the analyses address the following questions: (1) were recent immigrants differentially sorted to local labour markets; (2) do local labour markets differentially affect socio‐economic attainment; and (3) do modes of socio‐economic attainment and patterns of ethnic inequality differ across metropolitan and peripheral labour markets? The analyses reveal that immigrants from the European republics and of lower education are more likely to settle in peripheral labour markets than in metropolitan labour markets. Peripheral labour markets, compared with metropolitan labour markets, have detrimental consequences for the socio‐economic outcomes of immigrants. The data do not provide strong support for the thesis that patterns of socio‐economic attainment and inequality differ much across labour markets. The rules according to which socio‐economic attainment of immigrants is determined are, for the most part, similar across labour markets. In general, occupational status and earnings of immigrants are likely to increase with the passage of time, education, European origin; and to decline with age regardless of type of the local labour market. However, the socio‐economic outcomes of immigrants are considerably higher in the metropolis than in the periphery. The findings suggest that the local labour market plays a major role in the determination of immigrants' socio‐economic rewards and outcomes.     

The labour market absorption of CIS immigrants to Israel: 1989-1994

The labour market absorption in the 1990s of some 600,000 immigrants from the ex-USSR has, on the whole, been a major success. The rate of unemployment among immigrants who came in 1990 has converged on the rate of unemployment for native Israelis. However, concern has been focused on the low rates of occupational retention and the waste of human capital that this implies. We use three micro data sets to investigate the absorption dynamics of CIS immigrants in the Israeli labour market in the 1990s.
Our findings suggest that the employment absorption process is steady, if slow. The Labour Force Survey suggests that "academics" experience positive duration dependence during the first four years in Israel. Vocational training did not appear to promote employment absorption. However, Hebrew training has a beneficial effect on employment absorption. We caution against the interpretation of occupational mismatch as being identical with the waste of human capital. It takes a long time until owners of human capital can fully adapt it to their new milieu.     

Getting Ahead in the Capitalist Paradise: Migration from China and Socioeconomic Attainment in Colonial Hong Kong1

This article examines the initial labor market outcome and the subsequent mobility process of Chinese immigrants in Colonial Hong Kong using complete work history data and event history modeling. Contrary to the rhetoric that Hong Kong is a capitalist paradise for adventurers, the data showed that immigrants were penalized in their initial class placement, subsequent mobility, and current income attainment. Differences in educational attainment and the lack of transferability of pre‐migration human capital partly explained the attainment gap between immigrants and the natives. Yet the disadvantage of immigrants was also embedded in the local economic structure. The process of deindustrialization significantly lowered the chance of immigrants getting good first jobs when entering the labor market. Moreover, since deindustrialization benefited the natives by providing them with more opportunities in the service sector, it inadvertently widened the gap in upward mobility chances between natives and immigrants.     

Recent Immigration to Canada and the United States: A Mixed Tale of Relative Selection

Using large‐scale census data and adjusting for sending‐country fixed effect to account for changing composition of immigrants, we study relative immigrant selection to Canada and the U.S. during 1990–2006, a period characterized by diverging immigration policies in the two countries. Results show a gradual change in selection patterns in educational attainment and host‐country language proficiency in favor of Canada as its post‐1990 immigration policy allocated more points to the human capital of new entrants. Specifically, in 1990, new immigrants in Canada were less likely to have a B.A. degree than those in the U.S.; they were also less likely to have a highschool or lower education. By 2006, Canada surpassed the U.S. in drawing highly educated immigrants, while continuing to attract fewer low‐educated immigrants. Canada also improved its edge over the U.S. in terms of host‐country language proficiency of new immigrants. Entry‐level earnings, however, do not reflect the same trend: Recent immigrants to Canada have experienced a wage disadvantage compared to recent immigrants to the U.S., as well as Canadian natives. One plausible explanation is that while the Canadian points system has successfully attracted more educated immigrants, it may not be effective in capturing productivity‐related traits that are not easily measurable.     

The Native‐Immigrant Income Gap among the Self‐Employed in Sweden

During recent years we have observed that non‐western immigrants are overrepresented among the self‐employed in Sweden. A reason for this might be the difficulties faced by immigrants in the labour market. The unemployment rate among non‐western immigrants in Sweden is higher than among natives with similar human capital characteristics. While this is a well‐established result, we do not know much about how self‐employed immigrants perform economically compared to their native counterparts. The purpose of this paper is to describe and analyse the incomes of self‐employed immigrants and natives in Sweden. We will also discuss possible explanations for the income gap we find. We use Swedish register data for the period 1998 to 2002 and the population studied consists of individuals who have been continuously self‐employed during this period. By performing the analysis on this group of self‐employed we get a measure of the difference among the long‐term self‐employed. The outcome of interest is the average income over the period. Income regressions are estimated using both OLS and quantile regressions. We find that self‐employed immigrants receive significantly lower incomes than their native counterparts when controlling for individual characteristics, industry and start‐up year of the firm. The income gap is larger for non‐western immigrants than for western immigrants. Quantile regressions show that the native‐immigrant income gap is smaller at the top than at the bottom of the income distribution. Several possible explanations for the native‐immigrant income gap are discussed. One possible explanation is that immigrants have a lower reservation wage and accepts staying in business receiving a lower income than comparable natives. Another explanation might be that there is discrimination against self‐employed immigrants that will lead to lower incomes. There can be consumer discrimination or discrimination from banks and real estate owners.     

Does Poverty Among Immigrants Adapt to Country of Residence? Turks in Germany and Denmark

We use data on Turkish immigrants in two European welfare states, Denmark and Germany, and data on Turks at home. Unlike in most studies of immigrant poverty, we thus control for the differences in immigrant composition. Denmark and Germany have different welfare state types, labour market structure and institutions. We find that in both countries Turkish immigrants have much higher poverty rates than natives. We perform Fairlie decompositions to find that in Denmark, compared to Germany, a larger part of the native‐immigrant poverty difference is explained by market valuation of characteristics and by unobservables. Finally, we decompose poverty by subgroups and find that certain immigrant subgroups (such as families with children and the elderly) are especially vulnerable in both countries and that not much has changed in the two countries between 2008 and 2013 in terms of the vulnerability of these sub‐groups to poverty risk.     

Understanding the workweek of foreign born workers in the United States

I analyze the length of the workweek of foreign-born workers in the US I concentrate on workers supplying long hours of work—50 or more weekly hours and document that immigrants are less likely than natives to work long hours. Surprisingly, these differences are greatest among highly educated and salary paid workers, and persists even after conditioning for demographic characteristics. I explain these differences with two within occupation characteristics. First, relative to natives, immigrants are less likely to supply long work weeks if they work in occupations where the immigrant-native earnings differential is big. Second, immigrants are also less likely to supply long work weeks when they work in occupations with a wide dispersion of earnings. This second result is important, because the occupation dispersion of earnings has been used to characterize changes of the worker’s earnings over the worker life cycle (Bell and Freeman, Labour Economics: 8(2), 2001a; Working Time in Comparative Perspective, 2001b; Kuhn and Lozano, Journal of Labor Economics:26(2), 311–344, 2008), and a good measure of the incentives to supply long hours of work.     

Traces in the shadow: Occupational outcomes of previously undocumented migrants in Italy

Using a representative sample of currently legal third-country immigrants in Italy, obtained from the Social Condition and Integration of Foreign Citizens survey, this article examines the long-term labour market consequences of previous undocumented spells. First, formerly undocumented immigrants are identified using retrospective information on respondents' legal status. Second, immigrants are classified according to the duration of irregular spells before the achievement of the first residence permit. Third, current labour market outcomes are investigated to account for the endogeneity underlying the previous undocumented history. Results show that even though formerly undocumented immigrants are more likely to participate in the labour market, they are more likely to be employed in underqualified occupations than continuously legal immigrants. The duration of the irregular experience affects occupational qualification negatively, among both men and women. The lack of legal entry channels and policies to plan and regulate migration to Italy may reinforce labour market segmentation, exposing migrants to long-term occupational downgrade.     

Veränderte KontinuitätAltered Continuity

Despite profound economic and social changes in recent decades, many school leavers in Germany still go through the dual system of vocational training. The stability of this educational institution raises the question of whether, and if so how, apprentices’ entries into employment have changed in this period. Applying the method of sequence analysis, we look at process-produced longitudinal data from the Institute for Employment Research (IAB). It can be shown that the so-called standard pattern, that is the immediate hiring by the training firm on a full-time basis, has not been the norm at any time. Since the 1980s, we have observed a slight tendency for apprenticeship graduates to leave their training firms early. At the same time, continuation of employment within the training firm persists, and apprentices more frequently work part-time. We find the standard pattern of labour market entry to be most prevalent in large firms. Whereas women very often work part-time after their apprenticeships, foreign-born apprentices in particular suffer from disadvantageous labour market entry patterns, including longer periods of unemployment.     

Racialized Labour Market Incorporation? African Immigrants and the Role of Education‐Occupation Mismatch in Earnings

U.S. immigration policy debates increasingly center on attracting highly‐skilled immigrants. African immigrants, in particular, exhibit high levels of over‐education. But questions remain about whether African immigrants’ skills are appropriately utilized in the U.S. labour market. This paper uses U.S. Census and American Community Survey data to determine whether Africans’ over‐education leads to a corresponding wage disadvantage. I also investigate whether search and match, imperfect transferability, or queuing theory describes African immigrants’ wage outcomes. I find that, while African and Asian immigrants have similarly high rates of college education and over‐education, Africans experience significantly larger wage disadvantages due to over‐education. African immigrants’ low wages are closer to that of U.S. and Caribbean‐born blacks indicating that queuing theory describes their wage disadvantage. These findings suggest the need for policy addressing racial disparities in the labour market rather than new immigration policy.     

Poverty among long-term united states immigrants

In this paper we analyze the economic and social characteristics of impoverished long-term immigrants. We investigate in what ways this group differs from poor natives and what factors contribute towards the economic success or failure of long-term immigrants. We found that poor long-term immigrants are more likely than poor natives to live in central cities and to work full-time, and less likely to live in non-female-headed households. Long-term immigrants from refugee countries are over six times as likely ana immigrants from Mexico over three times as likely to be poor as long-term immigrants from Europe, even after considering family structure, education, and citizenship. Also, immigrants who live in single female-headed families are considerably more likely to be poor than those who live in married-couple families, and immigrants in extended families are less likely to be poor than those who are not. The welfare reform bill redefines eligibility criteria for immigrants with respect to participation in Food Stamps, SSI and AFDC. Because of the high risk of poverty among long-term immigrants (particularly refugees), their low rates of naturalization, and the predominance of extended families, it is likely that long-term immigrants will suffer economic setbacks as a result of welfare reform. We posit that this economic hardship is exacerbated by the fact that anti-poverty policies are not tailored to the circumstances of long-term immigrants, many of whom already work full-time