Labor market assimilation and the self-employment decision of immigrant entrepreneurs |
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Authors: | Magnus Lofstrom |
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Institution: | (1) University of California, Irvine, School of Social Sciences, 3151 Social Science Plaza, Irvine CA 92697-5100, USA (Fax: +949-824-4717; e-mail: mlofstro@uci.edu), US |
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Abstract: | This paper uses data from the 1980 and 1990 U.S. Censuses to study labor market assimilation of self-employed immigrants.
Separate earnings functions for the self-employed and wage/salary workers are estimated. To control for endogenous sorting
into the sectors, models of the self-employment decision are estimated. Self-employed immigrants are found to do substantially
better in the labor market than wage/salary immigrants. Earnings of self-employed immigrants are predicted to converge with
natives' wage/salary earnings at about age 30 and natives' self-employed earnings at about age 40. Including the self-employed
in the sample reduces the immigrant-native earnings gap by, on average, 14%.
Received: 10 November 1999/Accepted: 3 August 2000 |
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Keywords: | JEL classification: J15 J23 J61 |
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