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Coming to America: Does Having a Developed Home Country Matter for Self-Employment in the United States?

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Abstract:

This research examines the relationship between the economic status of an immigrant's home country and the probability of self-employment in the US. We find that immigrants from developing countries on average have lower self-employment probabilities relative to immigrants from developed countries. Similarly, we find a positive correlation between the current HDI of an immigrant's home country and the probability of self-employment in the US. These result are unexpected given that past research suggests immigrants from countries with high levels of self-employment (developing countries) are more likely to be self-employed in the US. We provide a possible explanation for these results.

Document Type: Research Article

DOI: http://dx.doi.org/10.1257/aer.102.3.538

Publication date: May 1, 2012

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aea/aer/2012/00000102/00000003/art00094
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