Returns from Self-Employment: Using Human Capital Theory to Compare U.S. Natives and Immigrants

Authors

Nikola Popovic, Illinois Wesleyan UniversityFollow

Abstract

The focus of this paper is to examine the economic returns from self-employment when comparing natives and immigrants. I hypothesize that returns from self-employment will increase with age and education, and that immigrants from China, India, and the Philippines will have higher returns while immigrants from Mexico will have lower returns than natives. I also hypothesize that immigrants with high levels of education will earn more than natives with the same amount of education. The OLS regressions show that human capital variables explain the differences in self-employed income between natives and immigrants, as the literature suggests.

Recommended Citation

Popovic, Nikola (2011) "Returns from Self-Employment: Using Human Capital Theory to Compare U.S. Natives and Immigrants," Undergraduate Economic Review: Vol. 8: Iss. 1, Article 13.
Available at: https://digitalcommons.iwu.edu/uer/vol8/iss1/13