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Linking Self-Employment Before and After Migration: Migrant Selection and Human Capital

Authors :
Andrey Tibajev
Source :
Sociological Science, Vol 6, Iss 23, Pp 609-634 (2019)
Publication Year :
2019
Publisher :
Society for Sociological Science, 2019.

Abstract

In linking self-employment before and after migration, the often-cited home-country self-employment hypothesis states that immigrants who come from countries with large self-employment sectors are themselves more likely to have been self-employed and hence have a higher propensity for self-employment in their destination country. Using Swedish data, this study shows that the first part of the hypothesis, that origin-country average rates of self-employment can be used to approximate individual experience, is false; but the second part, the connection between self-employment before and after migration, is true if the measurement is done on the individual level. Migrants who have been self-employed before migration accumulate entrepreneurial human capital, making future self-employment a more desirable labor market alternative vis-à-vis wage employment. But because of migrant selection, this association cannot be captured by aggregate measures, and this is the reason why the home-country self-employment hypothesis, although intuitive, has underperformed in previous empirical tests.

Details

Language :
English
ISSN :
23306696
Volume :
6
Issue :
23
Database :
Directory of Open Access Journals
Journal :
Sociological Science
Publication Type :
Academic Journal
Accession number :
edsdoj.2dea1c3d335641c4a4ea3d75cd31e865
Document Type :
article
Full Text :
https://doi.org/10.15195/v6.a23