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Immigrants’ self-employment over the local business cycle in Sweden
Linnaeus University, School of Business and Economics, Department of Economics and Statistics. (Linnaeus University Centre for Labour Market and Discrimination Studies)
2015 (English)Report (Other academic)
Abstract [en]

The study combines the large Swedish register data at individual level with the unemployment data at region level to investigate to what extent the entry intoself-employment, particular among immigrants, are affected by the local business cycle. We show that local unemployment rate negatively affects the entry intoself-employment among native men and immigrant men, except immigrants from Middle East. Moreover, such pull effect is weaker among non-European immigrants’ men. Furthermore, the result shows that Middle Easternimmigrants’ men are pushed into self-employment in economic downturns. Similar with men, our results show that the local unemployment rate also negatively affects women’s entry into self-employment except immigrants from Middle East. However, thisnegative effect is quantitatively much smaller than amongmen, indicating thebusiness cycle playsa less important role in determining women’s self-employment entry decision.

Place, publisher, year, edition, pages
2015. , 31 p.
Series
Working paper series / Linnaeus University Centre for Labour Market and Discrimination Studies, 2015:15
Keyword [en]
Immigrants, self - employment, local unemployment rate, business cycle
National Category
Economics
Research subject
Economy, Economics
Identifiers
URN: urn:nbn:se:lnu:diva-50626OAI: oai:DiVA.org:lnu-50626DiVA: diva2:911377
Available from: 2016-03-11 Created: 2016-03-11 Last updated: 2017-06-19
In thesis
1. Essays on Self-employment, Happiness and International Trade
Open this publication in new window or tab >>Essays on Self-employment, Happiness and International Trade
2017 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The thesis consists of three empirical essays on the topics of self-employment, happiness and international trade.

Essay 1 studies how immigrant self-employment entry is affected by the local business cycle in Sweden. Using the unemployment rate at the local labour market level as a proxy for the local business cycle, our study shows that the self-employment entry behaviour for native men and immigrant men is negatively affected by the unemployment rate, except for immigrants from Middle East. However, such a negative effect is quantitatively weaker among the non-European immigrants. Further, the result shows that immigrants from the Middle East are positively affected by the unemployment rate, meaning they are more likely to be pushed into self-employment in recessions. For women, we also find the unemployment rate has a negative impact on the self-employment decision of native women and immigrant women, except for the Middle East group. However, compared with men, the quantitative size of the unemployment rate effect on self-employment is smaller among women, implying the less important role of business cycle in determining females’ entry into self-employment.

Essay 2 investigates the non-pecuniary return of self-employment in China. The results show that the life satisfaction of self-employed men is significantly higher than that of wage-employed men; the life satisfaction of self-employed women is not statistically significant different from that of wage-employed women. Moreover, we show that the life satisfaction of self-employed men in the informal sector is significantly higher than that of wage-employed men in the formal sector. The life satisfaction of wage-employed men in the informal sector is not significantly different from that of wage-employed men in the formal sector. For women, we find that there is no significant life satisfaction disparity between workers in the formal and informal sector. Finally, our job satisfaction data also concludes that self-employment in China is not inferior to wage employment.

Essay 3 evaluates how Swedish manufacturing employment is affected by the increasing import competition from China. The results show that the growth of manufacturing employment is not statistically significant affected by the increasing import competition from China. Moreover, in general, the increasing import exposure from China does not significantly affect the employment growth of non-manufacturing sector either. Regarding the earnings, the analysis shows that the low wage earners in the manufacturing sector is not significantly affected by the increasing import penetration from China while median and high wage earners are positively affected.

Place, publisher, year, edition, pages
Linnaeus University Press, 2017. 135 p.
Series
Linnaeus University Dissertations, 282/2017
Keyword
business cycle, employment, immigrant, import competition, informality, life satisfaction, local labour market, self-employment, unemployment rate
National Category
Economics
Research subject
Economy, Economics
Identifiers
urn:nbn:se:lnu:diva-65543 (URN)978-91-88357-67-0 (ISBN)
Public defence
2017-04-10, Weber, 13:51
Opponent
Available from: 2017-06-19 Created: 2017-06-19 Last updated: 2017-06-19Bibliographically approved

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Citation style
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  • Other locale
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Output format
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