The Persistence of Self-Employment Across Borders: New Evidence on Legal Immigrants to the United States
Institute for the Study of Labor (IZA)
David A. Jaeger
Ph.D. Program in Economics, City University of New York Graduate Center; National Bureau of Economic Research (NBER); University of Cologne - Department of Economics; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute); University College London - CReAM - Centre for Research and Analysis of Migration
School of Economics, University of Nottingham
IZA Working Paper No. 3250
Using recently-available data from the New Immigrant Survey, we find that previous self-employment experience in an immigrant's country of origin is an important determinant of their self-employment status in the U.S., increasing the probability of being self-employed by about 7 percent. Our results improve on the previous literature by measuring home-country self-employment directly rather than relying on proxy measures. We find little evidence to suggest that home-country self-employment has a significant effect on U.S. wages in either paid employment or self employment.
Number of Pages in PDF File: 25
Keywords: self-employment, entrepreneurship, New Immigrant Survey
JEL Classification: J61, J21
Date posted: May 23, 2008
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