Self-Employment Among Immigrants: A Last Resort?

University of Aarhus Economics Working Paper No. 2003-13

33 Pages Posted: 9 Oct 2003

See all articles by Kraen Blume Jensen

Kraen Blume Jensen

Amternes og Kommunernes Forskningsinstitut (AKF); The Aarhus School of Business

Mette Ejrnaes

University of Copenhagen - Department of Economics

Helena Skyt Nielsen

Aarhus University - Department of Economics and Business Economics; IZA Institute of Labor Economics

Allan Wurtz

Aarhus University - Department of Economics and Business Economics

Abstract

Based on unique register data of male immigrants in Denmark, we investigate whether self-employment is used as a last resort. To identify self-employment as a last resort, we define different types of immigrants as a function of transition probabilities between wage-employment, non-employment and self-employment. The transition probabilities are estimated using discrete competing risks models controlling for unobserved heterogeneity and duration dependence. We find that for certain groups of immigrants, a large fraction can be characterized as using self-employment as a last resort.

Keywords: discrete competing risks, duration, random effects, self-employment

JEL Classification: C23, C25, C41, J23

Suggested Citation

Jensen, Kraen Blume and Ejrnes, Mette and Nielsen, Helena Skyt and Wurtz, Allan, Self-Employment Among Immigrants: A Last Resort?. University of Aarhus Economics Working Paper No. 2003-13, Available at SSRN: https://ssrn.com/abstract=438040 or http://dx.doi.org/10.2139/ssrn.438040

Kraen Blume Jensen

Amternes og Kommunernes Forskningsinstitut (AKF) ( email )

Nyropsgade 37
Copenhagen, DK-1602
Denmark

The Aarhus School of Business ( email )

Haslegaardsvej 10
DK-8210 Aarhus, 8210
Denmark

Mette Ejrnes

University of Copenhagen - Department of Economics ( email )

Ă˜ster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark
+45 35323062 (Phone)
+45 35323064 (Fax)

Helena Skyt Nielsen

Aarhus University - Department of Economics and Business Economics ( email )

Fuglesangs Alle 4
Aarhus, 8210
Denmark

HOME PAGE: http://person.au.dk/hnielsen@econ.au.dk

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Allan Wurtz (Contact Author)

Aarhus University - Department of Economics and Business Economics ( email )

Universitetsparken
Building 350
DK-8000 Aarhus C
Denmark
+45 8942 1133 (Phone)
+45 8613 6334 (Fax)

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