TY - JOUR
T1 - Self-employment dynamics of immigrants and natives
T2 - Individual-level analysis for the Canadian labour market
AU - Naveed, Amjad
AU - Ahmad, Nisar
AU - Esmaeilzadeh, Rayhaneh
AU - Naz, Amber
N1 - Publisher Copyright:
© 2019 by the authors.
PY - 2019/12/1
Y1 - 2019/12/1
N2 - This paper analyses the dynamic transitions of self-employment in four states of the Canadian labour market (paid-employment, self-employment, unemployment, and being out of the labour force) by answering three core questions: (1) What are the determinants of the transitions into and out of the four labour market states? (2) Are the probabilities of transitions between immigrants and natives significantly different, and if so, are they due to entry-exit rate gaps between immigrants and natives? (3) What are the proportions of spurious and structural state dependence in the labour market states of immigrants and natives? Our analysis was based on longitudinal data from Canada's Survey of Labour and Income Dynamics (SLID) for males aged 25 to 55 for the period 1993 to 2004. Our results revealed that immigrants rather than natives are relatively more likely to be self-employed during the unemployment period. The findings also confirmed that males with positive investment income or wealth tended to be largely self-employed. From a policy perspective, the government provision of financial support towards self-employment positively benefits natives in seeking self-employment opportunities. Government policies to lessen labour market discrimination promotes the self-employment of immigrants.
AB - This paper analyses the dynamic transitions of self-employment in four states of the Canadian labour market (paid-employment, self-employment, unemployment, and being out of the labour force) by answering three core questions: (1) What are the determinants of the transitions into and out of the four labour market states? (2) Are the probabilities of transitions between immigrants and natives significantly different, and if so, are they due to entry-exit rate gaps between immigrants and natives? (3) What are the proportions of spurious and structural state dependence in the labour market states of immigrants and natives? Our analysis was based on longitudinal data from Canada's Survey of Labour and Income Dynamics (SLID) for males aged 25 to 55 for the period 1993 to 2004. Our results revealed that immigrants rather than natives are relatively more likely to be self-employed during the unemployment period. The findings also confirmed that males with positive investment income or wealth tended to be largely self-employed. From a policy perspective, the government provision of financial support towards self-employment positively benefits natives in seeking self-employment opportunities. Government policies to lessen labour market discrimination promotes the self-employment of immigrants.
KW - Entry and exit rate
KW - Immigrants and natives
KW - Longitudinal data
KW - Multinomial logit
KW - Self-employment
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U2 - 10.3390/su11236671
DO - 10.3390/su11236671
M3 - Article
AN - SCOPUS:85082956695
SN - 2071-1050
VL - 11
JO - Sustainability (Switzerland)
JF - Sustainability (Switzerland)
IS - 23
M1 - 6671
ER -