Immigrant Self-employment: Entrepreneurs, Microbusinesses, and Wealth Attainment

• In Event: 2371 - Migration and Mobility

Abstract

Self-employment is a well-known immigrant strategy to survive and thrive in the U.S. Relatively little known, however, is the heterogeneity of types of self-employment, their characteristics, and their relationship with wealth attainment. This paper seeks to fill in these gaps. The paper’s conceptual model incorporates social stratification, economic, and assimilation theories, from which testable hypotheses are derived. Using the most recent nationally representative data, the paper provides a detailed description of the attributes of entrepreneurs, microbusiness operated by a single person, and those by family members. The paper goes on to evaluates the major drivers of employment vs. types of self-employment and how these types of work contribute to the net worth of workers. The preliminary analysis reveals that immigrants are more likely to engage in both entrepreneurship and family business, accumulate more wealth, and are not concentrated in low-end services. This population-based empirical evidence helps offset concerns over immigration and supports the establishment of a policy environment that taps immigrants’ potential.

Author

• Lingxin Hao, Johns Hopkins University