Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161311
Authors: 
Cai, Zhengyu
Winters, John V.
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers 10688
Abstract: 
This paper uses the American Community Survey to examine the previously overlooked fact that foreign STEM (science, technology, engineering, and mathematics) graduates have much lower self-employment rates than their non-STEM counterparts, with an unconditional difference of 3.3 percentage points. We find empirical support for differing earnings opportunities as a partial explanation for this self-employment gap. High wages in STEM paid-employment combined with reduced earnings in self-employment make self-employment less desirable for STEM graduates. High self-employment rates among other foreign-born workers partially reflect weak paid-employment opportunities. Public policy should encourage efficient use of worker skills rather than low-value business venture creation.
Subjects: 
self-employment
immigration
foreign-born
college major
STEM
earnings
JEL: 
F22
J15
J31
L26
Document Type: 
Working Paper

Files in This Item:
File
Size
678.36 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.