Exits from immigrant self- employment

This paper is a study of exit rates from self-employment among immigrants in Sweden. A survey was administered to all immigrants who became self-employed during the period 2001–2005 and to the members of a native comparison group. The respondents were then followed up to the year 2010. Immigrants were found to have a lower propensity than natives of exiting self-employment for wage-employment but a higher propensity than natives of exiting self-employment for unemployment or for economic inactivity. Oaxaca-Blinder decompositions are conducted to study the extent to which different background characteristics affect differences in exit rates between immigrants and natives. In line with previous research, we find that labour market and self-employment experience prior to selfemployment as well as access to financial capital are important explanations for the difference between non-European immigrants and natives in exit rates from self-employment to unemployment and to being economically inactive. This paper is part of the project “Intergenerational redistribution among immigrants – Does that explain self-employment and labour market differences?” financed by the Swedish Research Council for Health, Working Life and Welfare”. The Council’s support is gratefully acknowledged. Please direct all correspondence to Lina Aldén. [email protected]