Self-employment and earnings among high-skilled immigrants in the United States
This paper uses data from the 1980 and 1990 U.S. Censuses to analyze the labor market experience of high-skilled immigrants relative to high-skilled natives. Immigrants are found to be more likely to be working in one of the high-skilled occupations than natives, but the gap between the two groups decreased in the 1980's. Given the high self-employment rates of this group of workers, about 20 percent, it is important to study this aspect of the labor market experience. High-skilled natives are more likely to be self-employed than high-skilled immigrants. Models of the self-employment decision, controlling for differences in socioeconomic background, occupation, regional differences in immigrant population proportions, national origin and ethnicity, are estimated. Evidence of positive enclave effects on selfemployment probabilities is found. Predicted earnings of self-employed immigrants are higher throughout most of their work life relative to wage/salary immigrants and natives, as well as compared to self-employed natives. Furthermore, there appears to be very little difference in predicted earnings across national origin group of self-employed immigrants. The low variation in predicted earnings across country of origin groups is not found for wage/salary immigrants.
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Arrival Cohort Borjas Brunello C. M. Schmidt choose self-employment co-ethnics compared to natives correction term country of origin Data are drawn drawn from 1980 Dustmann earnings across country earnings functions earnings models East Germany enclave variable estimated coefficients Ethnicity expected utility Furthermore Germany H-1B visa high-skilled immigrants high-skilled natives high-skilled occupations high-skilled workers immigrants and natives immigrants earn Immigrants in High-Skilled indicator variable Labor Economics labor market assimilation labor market performance lmmigrants Natives lmmigrants Lofstrom lslands lZA Discussion Papers M. A. Shields Males Ages Migration national origin groups natives and immigrants Natives Immigrants Immigrants North East Asia Number of Observations observable characteristics percent Predicted Age-Earnings Profile predicted earnings probit model proportion of high-skilled Public Use Samples Ratio of S-E reach earnings parity Returns to Education selection correction self-employed immigrants self-employed natives self-employment earnings self-employment probability self-employment rates Table U.S. Census U.S. labor market Wage wage/salary immigrants wage/salary sector weekly earnings