Self-employment dynamics of immigrants and natives: Individual-level analysis for the Canadian labour market

Amjad Naveed, Nisar Ahmad, Rayhaneh Esmaeilzadeh, Amber Naz*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

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.

Original languageEnglish
Article number6671
JournalSustainability (Switzerland)
Volume11
Issue number23
DOIs
Publication statusPublished - Dec 1 2019

Keywords

  • Entry and exit rate
  • Immigrants and natives
  • Longitudinal data
  • Multinomial logit
  • Self-employment

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Management, Monitoring, Policy and Law

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