Publication

Self-employment as a vehicle for labour market integration of immigrants and natives: The role of employment protection legislation

Ulceluse, M. & Kahanec, M., 5-Nov-2018, In : International Journal of Manpower. 39, 8, p. 1064-1079 16 p.

Research output: Contribution to journalArticleAcademicpeer-review

APA

Ulceluse, M., & Kahanec, M. (2018). Self-employment as a vehicle for labour market integration of immigrants and natives: The role of employment protection legislation. International Journal of Manpower, 39(8), 1064-1079. https://doi.org/10.1108/IJM-10-2018-0332

Author

Ulceluse, Magdalena ; Kahanec, Martin. / Self-employment as a vehicle for labour market integration of immigrants and natives : The role of employment protection legislation. In: International Journal of Manpower. 2018 ; Vol. 39, No. 8. pp. 1064-1079.

Harvard

Ulceluse, M & Kahanec, M 2018, 'Self-employment as a vehicle for labour market integration of immigrants and natives: The role of employment protection legislation', International Journal of Manpower, vol. 39, no. 8, pp. 1064-1079. https://doi.org/10.1108/IJM-10-2018-0332

Standard

Self-employment as a vehicle for labour market integration of immigrants and natives : The role of employment protection legislation. / Ulceluse, Magdalena; Kahanec, Martin.

In: International Journal of Manpower, Vol. 39, No. 8, 05.11.2018, p. 1064-1079.

Research output: Contribution to journalArticleAcademicpeer-review

Vancouver

Ulceluse M, Kahanec M. Self-employment as a vehicle for labour market integration of immigrants and natives: The role of employment protection legislation. International Journal of Manpower. 2018 Nov 5;39(8):1064-1079. https://doi.org/10.1108/IJM-10-2018-0332


BibTeX

@article{50094f39770a4bae87e9bb3821ca1c00,
title = "Self-employment as a vehicle for labour market integration of immigrants and natives: The role of employment protection legislation",
abstract = "Purpose: The purpose of this paper is to investigate the effect of employment protection legislation (EPL) on self-employment in a comparative analysis between immigrants and natives. Specifically, it investigates whether, as a result of more stringent regulations, self-employment becomes a vehicle for better labour market integration for immigrants and natives, and for better matching between the supply and demand of labour and skills. Design/methodology/approach: The authors use OECD indicators on the strictness of EPL, self-employment rates calculated for natives and immigrants from the EU Labour Force Survey and a range of control variables, in a longitudinal study covering 18 European countries over the period 1995–2013. The analysis employs a panel regression with random effects as the baseline model, with country and time fixed effects models serving for robustness checks. Findings: The results indicate that EPL of regular contracts affects native self-employment positively, with some evidence of a negative effect for immigrants. On the other hand, EPL of temporary contracts positively affects immigrants’ self-employment. These results indicate that a stricter EPL crowds out incumbent native workers from the prime employment segment of regular contracts into self-employment, whereas a similar effect exists for immigrant workers in the segment of temporary contracts. This is consistent with the hypothesis of segmentation of labour market opportunities between insiders and outsiders, with implications for immigration, employment and entrepreneurship policies. Originality/value: This is the first study to systematically study the effect of EPL on immigrant and native self-employment in a comparative framework. It elucidates to what extent self-employment serves as an alternative channel of labour market integration in response to less and more strict regulation of regular and temporary employment contracts. Distinguishing immigrant and native workers helps us understand how these effects may differ for outsiders and insiders in the labour market, as represented by the two groups.",
keywords = "Employment protection legislation, Immigrant self-employment",
author = "Magdalena Ulceluse and Martin Kahanec",
year = "2018",
month = "11",
day = "5",
doi = "10.1108/IJM-10-2018-0332",
language = "English",
volume = "39",
pages = "1064--1079",
journal = "International Journal of Manpower",
issn = "0143-7720",
publisher = "Emerald Group Publishing Limited",
number = "8",

}

RIS

TY - JOUR

T1 - Self-employment as a vehicle for labour market integration of immigrants and natives

T2 - The role of employment protection legislation

AU - Ulceluse, Magdalena

AU - Kahanec, Martin

PY - 2018/11/5

Y1 - 2018/11/5

N2 - Purpose: The purpose of this paper is to investigate the effect of employment protection legislation (EPL) on self-employment in a comparative analysis between immigrants and natives. Specifically, it investigates whether, as a result of more stringent regulations, self-employment becomes a vehicle for better labour market integration for immigrants and natives, and for better matching between the supply and demand of labour and skills. Design/methodology/approach: The authors use OECD indicators on the strictness of EPL, self-employment rates calculated for natives and immigrants from the EU Labour Force Survey and a range of control variables, in a longitudinal study covering 18 European countries over the period 1995–2013. The analysis employs a panel regression with random effects as the baseline model, with country and time fixed effects models serving for robustness checks. Findings: The results indicate that EPL of regular contracts affects native self-employment positively, with some evidence of a negative effect for immigrants. On the other hand, EPL of temporary contracts positively affects immigrants’ self-employment. These results indicate that a stricter EPL crowds out incumbent native workers from the prime employment segment of regular contracts into self-employment, whereas a similar effect exists for immigrant workers in the segment of temporary contracts. This is consistent with the hypothesis of segmentation of labour market opportunities between insiders and outsiders, with implications for immigration, employment and entrepreneurship policies. Originality/value: This is the first study to systematically study the effect of EPL on immigrant and native self-employment in a comparative framework. It elucidates to what extent self-employment serves as an alternative channel of labour market integration in response to less and more strict regulation of regular and temporary employment contracts. Distinguishing immigrant and native workers helps us understand how these effects may differ for outsiders and insiders in the labour market, as represented by the two groups.

AB - Purpose: The purpose of this paper is to investigate the effect of employment protection legislation (EPL) on self-employment in a comparative analysis between immigrants and natives. Specifically, it investigates whether, as a result of more stringent regulations, self-employment becomes a vehicle for better labour market integration for immigrants and natives, and for better matching between the supply and demand of labour and skills. Design/methodology/approach: The authors use OECD indicators on the strictness of EPL, self-employment rates calculated for natives and immigrants from the EU Labour Force Survey and a range of control variables, in a longitudinal study covering 18 European countries over the period 1995–2013. The analysis employs a panel regression with random effects as the baseline model, with country and time fixed effects models serving for robustness checks. Findings: The results indicate that EPL of regular contracts affects native self-employment positively, with some evidence of a negative effect for immigrants. On the other hand, EPL of temporary contracts positively affects immigrants’ self-employment. These results indicate that a stricter EPL crowds out incumbent native workers from the prime employment segment of regular contracts into self-employment, whereas a similar effect exists for immigrant workers in the segment of temporary contracts. This is consistent with the hypothesis of segmentation of labour market opportunities between insiders and outsiders, with implications for immigration, employment and entrepreneurship policies. Originality/value: This is the first study to systematically study the effect of EPL on immigrant and native self-employment in a comparative framework. It elucidates to what extent self-employment serves as an alternative channel of labour market integration in response to less and more strict regulation of regular and temporary employment contracts. Distinguishing immigrant and native workers helps us understand how these effects may differ for outsiders and insiders in the labour market, as represented by the two groups.

KW - Employment protection legislation

KW - Immigrant self-employment

UR - http://www.scopus.com/inward/record.url?scp=85057132369&partnerID=8YFLogxK

U2 - 10.1108/IJM-10-2018-0332

DO - 10.1108/IJM-10-2018-0332

M3 - Article

AN - SCOPUS:85057132369

VL - 39

SP - 1064

EP - 1079

JO - International Journal of Manpower

JF - International Journal of Manpower

SN - 0143-7720

IS - 8

ER -

ID: 113126356