The impact of self-employment on the economic integration of immigrants: Evidence from Germany

Traditional approaches in migration studies suggest that self-employment and entrepreneurial activities enhance the perspectives of economic advancement of immigrants in host countries. Therefore, in many popular destinations in Western Europe and Northern America, policies encouraging the self-empl...

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Main Authors: Jan Brzozowski, Anke Lasek
Format: Article
Language:English
Published: Cognitione Foundation for the Dissemination of Knowledge and Science 2019-01-01
Series:Journal of Entrepreneurship, Management and Innovation
Subjects:
Online Access:http://jemi.edu.pl/uploadedFiles/file/all-issues/vol15/issue2/JEMI_Vol15_Issue2_2019_Article1.pdf
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author Jan Brzozowski
Anke Lasek
author_facet Jan Brzozowski
Anke Lasek
author_sort Jan Brzozowski
collection DOAJ
description Traditional approaches in migration studies suggest that self-employment and entrepreneurial activities enhance the perspectives of economic advancement of immigrants in host countries. Therefore, in many popular destinations in Western Europe and Northern America, policies encouraging the self-employment of immigrants have been proposed. But does the self-employment contribute to the economic integration of immigrants? Is it a universal, one-way avenue that guarantees the successful insertion of foreigners in a new socio-economic environment? Based on the German Socio-Economic Panel dataset, this study empirically investigates the effect of self-employment on the economic integration of immigrants in one of the most important host countries in Europe. Our results demonstrate that the current self-employment status in Germany is associated with higher income in absolute and relative (self-assessment) terms. The immigrants with previous self-employment experience in Germany are less integrated than the average. This result indirectly shows that the business economy of immigrants is associated with a high risk of failure and not all self-employed individuals succeed in advancing in economic terms in a host country. Consequently, we argue that host countries should be more cautious in promoting entrepreneurship as the “perfect” and “universal” strategy that improves economic integration.
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spelling doaj.art-5f1a8b7f27ed48e7ace1ed52b5289e8c2023-11-02T08:21:31ZengCognitione Foundation for the Dissemination of Knowledge and ScienceJournal of Entrepreneurship, Management and Innovation2299-73262019-01-01152112810.7341/20191521The impact of self-employment on the economic integration of immigrants: Evidence from GermanyJan Brzozowski0Anke Lasek1 Department of European Studies, Cracow University of Economics, Rakowicka 27, 31-510 Kraków, Poland Cracow University of Economics, Rakowicka 27, 31-510 Kraków, Poland Traditional approaches in migration studies suggest that self-employment and entrepreneurial activities enhance the perspectives of economic advancement of immigrants in host countries. Therefore, in many popular destinations in Western Europe and Northern America, policies encouraging the self-employment of immigrants have been proposed. But does the self-employment contribute to the economic integration of immigrants? Is it a universal, one-way avenue that guarantees the successful insertion of foreigners in a new socio-economic environment? Based on the German Socio-Economic Panel dataset, this study empirically investigates the effect of self-employment on the economic integration of immigrants in one of the most important host countries in Europe. Our results demonstrate that the current self-employment status in Germany is associated with higher income in absolute and relative (self-assessment) terms. The immigrants with previous self-employment experience in Germany are less integrated than the average. This result indirectly shows that the business economy of immigrants is associated with a high risk of failure and not all self-employed individuals succeed in advancing in economic terms in a host country. Consequently, we argue that host countries should be more cautious in promoting entrepreneurship as the “perfect” and “universal” strategy that improves economic integration.http://jemi.edu.pl/uploadedFiles/file/all-issues/vol15/issue2/JEMI_Vol15_Issue2_2019_Article1.pdfimmigrant self-employmenteconomic integrationeconomic activity
spellingShingle Jan Brzozowski
Anke Lasek
The impact of self-employment on the economic integration of immigrants: Evidence from Germany
Journal of Entrepreneurship, Management and Innovation
immigrant self-employment
economic integration
economic activity
title The impact of self-employment on the economic integration of immigrants: Evidence from Germany
title_full The impact of self-employment on the economic integration of immigrants: Evidence from Germany
title_fullStr The impact of self-employment on the economic integration of immigrants: Evidence from Germany
title_full_unstemmed The impact of self-employment on the economic integration of immigrants: Evidence from Germany
title_short The impact of self-employment on the economic integration of immigrants: Evidence from Germany
title_sort impact of self employment on the economic integration of immigrants evidence from germany
topic immigrant self-employment
economic integration
economic activity
url http://jemi.edu.pl/uploadedFiles/file/all-issues/vol15/issue2/JEMI_Vol15_Issue2_2019_Article1.pdf
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