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Title:
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Immigrants and Entrepreneurship: a Road for Talent or Just the Only Road?
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Author:
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Iranzo Sancho, Susana
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Other authors:
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Universitat Rovira i Virgili. Departament d'Economia |
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Abstract:
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Casual evidence for some developed countries suggests that most talented migrants
become entrepreneurs (positive sorting), but entrepreneurship might also be chosen by
less talented migrants who have fewer opportunities in the labour market of the
destination countries (negative sorting). Building upon Lucas (1978), we develop a
theoretical framework to analyze the different mechanisms at play that draw migrants into
entrepreneurship. The model can explain the selection into self-employment of both highskilled
and less skilled migrants. We test the model predictions on a rich survey dataset
of immigrants in Spain for 2006-2007. Our findings reject a U-shaped relationship
between immigrants.skills and self-employment for the Spanish case and instead points
to positive sorting into entrepreneurship. Self-employed migrants tend to have
(statistically significant) better observable characteristics than salaried workers.
However, non-market mechanisms, that is, penalties in the labour market beyond the mere
human capital losses than migrants experience upon arrival, are also consistent with the
relatively higher probability of self-employment and the lower entrepreneurial quality of
certain migrant groups. |
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Publication date:
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2017 |
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Subject (UDC):
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331 - Treball. Relacions laborals. Ocupació. Organització del treball |
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Subject(s):
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Treballadors estrangers -- Espanya
Emprenedoria -- Espanya |
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Rights:
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L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: http://creativecommons.org/licenses/by-nc-nd/4.0/ |
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Pages:
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34 p. |
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Document type:
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Working Paper |
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Published by:
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Universitat Rovira i Virgili. Centre de Recerca en Economia Industrial i Economia Pública
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Collection:
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Documents de treball del Departament d'Economia;2017-23
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