Self-Employment among Immigrants: A Last Resort?

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 16.03.2004, 12:15 - 13:30


Presentation by 

Helena Skyt Nielsen (Aarhus University)


Based on unique register data of male immigrants in Denmark, we investigate if immigrants use self-employment as a last resort to avoid non-employment. To identify self-employment as a last resort, we develop a general framework to identify types of indivuduals based on transitions probabilities among all states. The states here are wage-employment, non-employment and selfemployment. 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.

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