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Preliminary version. Please do not quote The Employees of the Self-Employed. Who are They?

By Pernilla Andersson, Eskil Wadensjö and Jel-codes J J


Do self-employed immigrants employ workers from the same region as they come from themselves and do self-employed natives employ native workers? Which factors increase the probability of behaving in this way among the self-employed? Using unique data from Sweden where we can match the self-employed to their employees, we investigate these questions. We find that both natives and immigrants are more likely to employ workers originating from the same region than to employ workers from another region. For immigrants we find that living in a municipality with a high share of co-ethnics decreases the probability of employing natives, while the probability that natives employ immigrants increases with the immigrant share in the municipality. We find that the probability for immigrants to hire native workers increases with time spent in Sweden. These two results point to that the closeness to people from the same region and possible also one’s network plays an important role for the employment decisions for both selfemployed natives and immigrants

Topics: Key words, self-employment, immigrants, networks
Year: 2007
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