November 29, 2009
Magnus Lofstrom of the Public Policy Institute of California has an interesting new paper on low-skilled immigrant entrepreneurship
More than half of the foreign born workforce in the U.S. have no schooling beyond high school and about 20 percent of the low-skilled workforce are immigrants. More than 10 percent of these low-skilled immigrants are self-employed. Utilizing longitudinal data from the 1996, 2001 and 2004 Survey of Income and Program Participation panels, this paper analyzes the returns to self-employment among low-skilled immigrants. We compare annual earnings and earnings growth of immigrant entrepreneurs to immigrants in wage/salary employment as well as native born business owners. We find that the returns to low-skilled self-employment among immigrants is higher than it is among natives but also that wage/salary employment is a more financially rewarding option for most low-skilled immigrants. An exception is immigrant men, who are found to have higher earnings growth than immigrants in wage/salary employment and are predicted to reach earnings parity after approximately 10 years in business. We also find that most of the 20 percent male native immigrant earnings gap among low-skilled business owners can be explained primarily by differences in the ethnic composition. Low-skilled female foreign born entrepreneurs are found to have earnings roughly equal to those of self-employed native born women.
The chart below shows low-skilled self employment rates by gender and nativity in the United States.
September 22, 2009
Marc Tracy at Biz Box writes an interesting article on visa laws. Here is an excerpt:
But onerous immigration and visa requirements–the type that forces Google (whose co-founder Sergey Brin was born in Russia, by the way), for example, to spend $4.5 million each year on visa administration–are limiting the extent to which the U.S. can take advantage of its magnetism and pull. The consequences of these regulations should be obvious: given how the homelands of many foreign-born tech superstars–China, India, Russia, South Korea, etc.–have developed over the past years and decades, now they are increasingly likely to stay at home and innovate in and for their own countries. And the U.S., which should be laying out the red carpet for them, is giving them one more reason to do just that.
It’s insanity. And it’s also, indelibly, a small-business and entrepreneurship issue (far more than it is merely a tech issue–the immigration restrictions affect life-sciences, communications, the arts and fashion, and indeed any other industry that would stand to benefit from the brilliance of foreign nationals). We’re going to do our part to frame this as such. But we hope that prominent voices in the small-business community, whether they are lobbies or legislators or the head of the Small Business Administration, will speak up for a more open immigration and visa policy where idea-jobs are concerned. The future of small-business and entrepreneurship is at stake.
Click here to read the entire article.
September 21, 2009
“Rap is among the most conservative genres of pop music. It exalts capitalism and entrepreneurship with a brio that is typically considered Republican. (Admiring references to Bill Gates are common in hip-hop.)”
~ David Segal