The determinants of immigrant self-employment in Australia

This article applies both single cross-section and dual cross-section roaches to modeling the propensity to be self-employed among the born in the Australian labor market. The results from a single cross-section regression indicate that educational attainment, Australian labor market experience, the availability of capital, marital status and job related characteristics are important influences on self-employment outcomes. The propensity to be self-employed among immigrants is shown to be enhanced by the existence of enclave markets. Ethnic enclaves created via a common language provide more relevant prospects for self-employment than does the concentration of immigrants by birthplace. However, enclave markets do not have a significant impact on the self-employment outcomes of the Australian-born children of immigrants. The dual cross-section approach shows that the cross-section self-employment growth among immigrants is predominantly an adjustment effect rather than a cohort effect.