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Department of Sociology Highly Educated Self-Employed Persons with and without Migration Background in a Highly Regulated Economy. The Case of Austria 03/2017 Editorial team: Mirjam Pot Cornelia Schadler soz.univie.ac.at/forschung/working-papers

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Page 1: Highly Educated Self-Employed Persons with and without ......Highly educated self-employed persons with and without migration background in a highly regulated economy. The case of

DepartmentofSociology

HighlyEducatedSelf-EmployedPersonswithandwithoutMigrationBackgroundinaHighlyRegulatedEconomy. TheCaseofAustria

03/2017

Editorialteam:MirjamPotCorneliaSchadlersoz.univie.ac.at/forschung/working-papers

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Highlyeducatedself-employedpersonswithandwithoutmigrationbackgroundinahighlyregulatedeconomy.

ThecaseofAustria.

SabrinaLaufer

SabrinaLauferreceivedaresearchawardbytheAustrianEconomicChambersin2015.Herresearchinterestsarefocusedontheexplorationofself-employmentinAustriaandsocialmobility.Sheisinterestedinapplyingtheoreticalconceptsanddevelopingpolicyrelevantanalysis.Whileshepreferstoworkwithquantitativemethods,sheregardsqual-itativemethodsasaninvaluablecomplement.Sheiscurrentlyworkingonthecomple-tionofherthesis‘Employmentchancesandrisksofself-employedpersonswithandwithoutmigrationbackgroundinAustria.Anempiricalstudyusingthemicrocensusandasupplementaryonlinesurvey.’paralleltoherjobatStatisticsAustriawhereshehasbeenemployedsince2009.Attheendof2008shefinishedherstudiesinSociology,Psy-chologyandPoliticalScienceinJena.

[email protected]

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Abstract

Fromaneconomicpointofviewself-employedpersons(withmigrationbackground)makevalu-ablecontributionstosociety,forinstanceasemployers.Fromasociologicalpointofviewitisin-teresting to evaluate the causesof (migrant) self-employment in timesof social andeconomicchange intransnationaleconomies.Thus,whatarethereasonsforself-employmentandwhichopportunitiesandrisksareinvolved?Whichsocialgroupsfaceadvantagesandwhichfacedisad-vantages?Basedonrepresentativedata,theAustrianmicrocensus,thispaperpresentsanover-viewof four typesof self-employmentbymigrationbackgroundbetween2004and2015. Fur-thermore,thearticlefocussesononetypebylogitregressionsforthereferenceyear2015.Sev-eral variables on different levels were tested. The results indicate that the likelihood of self-employmentamongpersonswithhigheducationandpost-industrialoccupations is thehighestformen,personsover40,part-timeworkers,personsworking fromhome,personsworkingonweekendsandhouseorapartmentowners.Hence,thefindingsoutlinealabourmarketsegmen-tationbycountryoforiginandgender,flexibilisationofworkandhighrelevanceofhomeowner-ship.Itishopedtoprovidecontentsforpolicymakersforthepurposeofbuildinginstrumentsforregulations.

Zusammenfassung

Aus ökonomischer Perspektive leisten selbständig tätige Personen (mitMigrationshintergrund)wertvolleBeiträgezurGesellschaft,zumBeispielalsArbeitgeberinnenundArbeitgeber.Aussozi-ologischerSichtistesinteressant,dieUrsachender(Migrantinnen-undMigranten-)Selbständig-keit inZeitensozialenundwirtschaftlichenWandels in transnationalenÖkonomienzuuntersu-chen.DaherstelltsichdieFrage,wassinddieGründefürdieSelbständigkeitundwelcheChancenundRisikengibtes?WelchesozialenGruppenhabenVorteileundwelchehabenNachteile?Aufder Grundlage repräsentativer Daten, demösterreichischenMikrozensus, präsentiert diese Ar-beiteinenÜberblickübervierTypenselbständig tätigerPersonenmitundohneMigrationshin-tergrundzwischen2004und2015.EinTypuswirdanhandvonlogistischenRegressionenfürdasReferenzjahr2015näheruntersucht.MehrereVariablen,aufverschiedenenEbenen,werdenge-testet.DieErgebnissezeigen,dassdieWahrscheinlichkeitselbständigzusein,unterPersonenmithoher Bildung und postindustriellen Berufen, am höchsten ist für:Männer, Personen über 40,Teilzeitbeschäftigte, Personen, die von zu Hause aus arbeiten, anWochenenden arbeiten undHaus-oderWohnungsbesitzerinnenund-besitzer.EszeigtsicheineArbeitsmarktsegmentierungnach Herkunftsland und Geschlecht, Arbeitsmarktflexibilisierung und hohe Relevanz von Haus-/Wohnungseigentum.DieseAnalysenkönneneinenBeitragzurBildungvonpolitischenEntschei-dungenleisten.

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Introduction

From an economic point of view self-employed persons (withmigration background1)

make valuable contributions to society. They are an essential social and economic re-

source. If self-employed2 – as various academic studies have pointed out – then they

makeacontributiontotheinternationalisationofthemiddleclassandcreationofjobs.

Fromasociologicalpointofviewitisinterestingtoevaluatethecausesof(migrant)self-

employmentintimesofeconomicchangeandrestructuringintransnationalandemerg-

ingeconomies.Therefore,thequestionariseswhatarethereasonsforself-employment

andwhich opportunities and risks are involved?Which social groups face advantages

andwhichfacedisadvantages?Previousstudiesinthisfieldhave,toalargeextent,re-

liedonqualitative researchmethods as self-employment is heterogeneous and there-

forenotaneasilycomparablephenomenon.Againstthisbackground,thispaperintends

tomakeacontributiontothefollowingresearchquestions,whichareinvestigatedusing

amixedmethodsdesign:Whattypesofself-employedpersonsarethere?Whichcharac-

teristicsinfluencewhetherapersonisself-employedoremployed?Arethesecharacter-

isticsrelatedtotheworkplace,household,personorregion?Furthermore,whatarethe

differencesbetweenpersonswith andwithoutmigrationbackground? The analysis of

thedeterminantsofself-employmentareofgreatimportancetogenerateknowledgeon

this specific segment of the labourmarket. Such information provides indications for

policymakersand,lastbutnotleast,furthersthedevelopmentoftheoryinthefield.

Starting from an interactive approach for the explanation of self-employment (mixed

embed-dedness),typesaretheoreticallyderivedand,forthefirsttime,alsoappliedem-

pirically.Onthebasisofmicrocensusdata,thedistributionoftypesovertimeisshown

whileonetypeisanalysedinmoredetailusinglogisticregressions.Theresultsindicate

that the likelihood of self-employment among personswith high education and post-

1 In this study, a person with migration background means she or both her parents are born outside of Austria. The term migrant is used concurrent to migration background. 2 In this study a self-employed person may have an employee or not, or is a freelancer (excluding economic branches of agriculture, forestry and fishing/public administration). Thus, the focus of the study are nearly all self-employed persons.

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industrialoccupations3ishighestformen,personsover40,part-timeworkers,persons

working from home, personsworking onweekends and house or apartment owners.

Theresultsbyregionrespectiveoftheircountryoforiginhavetobeobservedinamore

differentiatedway.Forinstance,womenfromthesecondgenerationorfromGermany

orfromaEU25countryorfromanon-Europeancountryhaveahighprobabilityofbeing

self-employed.

Inthemainpartofthispaper,IwillfirstreflectontheAustriancaseandthereasonsfor

analysingtheself-employmentstructure.Secondly,Iwillgiveabriefoverviewofthere-

searchon self-employment (forAustria and internationally) and thirdly, themethodo-

logicalsteps,theuseddataandthekeyfindingswillbepresented.Theresultssuggesta

labourmarketsegmentationbycountryoforiginandgender,flexibilisationofworkand

highrelevanceofhomeownership.Thisresearchmakesacontributiontotheoryonmi-

grant entrepreneurship by applying the typology of opportunity structures over time

andtheexplanationoffactorsinfluencingself-employmentofmigrantsandnatives.

Reasonsfordoingresearchonself-employmentinAustria

Why is researchonself-employment (still) importantandwhy isAustriaan interesting

countrytoexamine?Onereasonself-employmentisstillrelevantisthatthestrategyof

theEuropeanCommissionistoincreasetheself-employmentrateby2020(Europäische

Kommission, 2013). Policy makers need benchmarks and country specific knowledge

aboutthelabourmarketmechanismfordevelopinginstrumentstoregulatetheecono-

my. Another reason is that economies are changing due to globalisation. Self-

employment isanessentialemploymentfactor inpost-industrialsocietiesasoutsourc-

ing,fragmentingofmarketsandtheincreasingservicesectorarecausingtheriseof it.

Thereisashiftawayfromemploymentinlargefirmstoself-employmentinsmallones

(Volery, 2007). This studyaims to contribute toa greaterunderstandingabout the la-

bourmarketandthedriversofself-employmentinAustria.

3 Post-industrial occupations are, for instance, scientists.

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Austriaisaninterestingcaseasthelabourmarketishighlyregulatedandthecollective

paymentcommitmentisveryhigh(Haberfellner,2003).Oneexampleforregulationare

market-basedinstruments(activelabourmarketpolicy).Theseareusedtoinfluencethe

behaviour ofmarket participants (WKO, 2015). Another reason for doing research on

self-employmentinAustriaisthattheself-employmentrateandtheunemploymentrate

arerising(WKO,2016a,2016b).Nexttothis,theshareofpersonswithmigrationback-

ground and university degrees is higher than the one for persons without migration

background(18.6percentforpersonswithmigrationbackgroundvs.16.4percentfor

personswithoutmigrationbackground)(StatistikAustria,2015a).Incomparisontooth-

er member states, Austria has a low self-employment rate. Also in Austria the self-

employmentrateofpersonswithmigrationbackgroundintotalislowerthantherateof

personswithoutmigrationbackground.Theycanbefacedwithproblems,suchasexist-

ingstereotypes inpublicopinion, low income,ethnic labourmarketsegmentation,de-

qualification,marginalisationandresidentialsegregation(Asselinetal.,2006;Fassman,

1997;Krause&Liebig,2011;OECD,2013;Schmatz&Wetzel,2014).

Thesereasonsareacausetopaintadifferentiatedpictureaboutself-employedpersons

withandwithoutmigrationbackground.Furthermore,thesubgroupofhighlyeducated

personshave thehighest self-employment rate (aswill be shown later).Are theypre-

destinedtoincreasetheself-employmentrateinAustria?

Researchonself-employment

Self-employedmigrantshavegainedattention inAustria.The first systematic research

on themwas undertaken around themillennium (Haberfellner, Betz, Böse, & Riegler,

2000).Theycanbefacedwithdiverseproblems.Nexttoracistattitudes,publicopinion

isoftencharacterisedbystereotypesandassociatesmigrantenterpriseswithstructural

marginalisation. Visible self-employedmigrants are often the small andmedium sized

enterprises(SMEs)inpublicspaces,suchaskebabandpizzabusinesses.Thetrendofre-

centyears,resultingfromtheEUEasternenlargement,showsaheterogeneouspicture

ofthisself-employmentgroupinAustria(Haberfellner,2011).Studiesshowahighcon-

centrationofself-employedmigrantsinViennaandLowerAustria(Schmid,Mandl,Dorr,

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Staudenmayer,&Haberfellner, 2006). In total, thosewhoare self-employedandborn

outsideofAustriaaremorehighlyeducatedthanthoseborninAustria(OECD,2013).

Themostcloselyrelatedstudytothepresentoneisaboutdifferencesofimmigrantsand

nativesinSweden(Ohlsson,Broomé,&Bevelander,2012).Thekeyfindingsofthisstudy

are: the country of birth has little influence on the individual’s propensity to be self-

employed,butitismoreimportantthanthelabourmarketarea(Ohlssonetal.,2012,p.

420).Theauthorsconcludethatthelargestpercentageofvariancecanbeexplainedby

individual variables and not by the immigrant/ethnic background. Another study that

raisesattentiontoethnicorigin,locallabourmarketsandself-employmentsuggeststhat

futureresearchonimmigrantself-employmentshouldfocusonthemechanismbehind

the immigrant’s self-employment decision (Andersson, Hammarstedt, Hussain, &

Shukur,2013).Differenttypesofsurveysmightbehelpful tounderstand, for instance,

thecareerpathsoftheself-employedperson.

Research onmigrant entrepreneurship/self-employment shows uncertainty about the

causesthatdriveself-employment.It isstillunclearif it istheindividualorthecontext

levelthatmatters.4Thereisresearchaboutthepushandpullfactorsforcreatingabusi-

ness (inAustria) (Enzenhoferetal.,2007;Schmidetal.,2006).Qualitativeresearch5 in

Austriashowsadominationofthemotives‘self-realisation’,‘beingyourownboss’and

‘realisinganidea’(Schmidetal.,2006).Forself-employedpersonswithmigrationback-

grounddoingbusinessinlessprofitablebranches,suchasretailorgastronomy,itisas-

sumedthattheyarepushedintobusiness(push-factor).Itisnotclearifthisisthecase

forAustria (Schmidetal., 2006).However,problems for somepersonswithmigration

backgroundontheAustrianlabourmarketaredequalificationandlowincome(Schmatz

&Wetzel,2014;Stadler&Wiedenhofer-Galik,2011).Especiallyforthirdcountrynation-

alswho arewilling towork as a self-employee in a regulated trade6 Austria does not

provide full and automatic labourmarket access for immigrants. Dissimilar education

andworkbiographiesof immigrantsandnativesaremakingthedifference.Therefore,

4 A well elaborated classification of contexts is provided by Friederike Welter (Welter, 2011). 5 A quantitative study for Vienna shows that 14 per cent are pushed into self-employment, 41 per cent are pushed and pulled and 45 per cent are pulled (Schmatz & Wetzel, 2014). 6 The German term is ’reglementiertes Gewerbe’.

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immigrants see theneed toemploy amanagerwith the required skills (Schmidet al.,

2006).Additionally,theregulativeframeworkismostlydispersedandcomplex.Theas-

sessmentandrecognitionofforeignqualificationsinvolves,forinstance,fourministries

andthereareamultitudeofdifferentproceduresinplacedependingontheorigin,do-

mainandlevelofdegree(OECD,2012).

Theoreticalstartingpoint

The theoretical startingpoint of this research is the typologyof opportunity structure

developed by Kloosterman and Rath (Kloosterman& Rath, 2011). The theoretical ap-

proach behind their typology is calledmixed embeddedness and is an interactive ap-

proach.Interactiveinthiscontextmeansthatseveralvariablesfromdifferentlevelsare

atplaytogether.Thefirstinteractiveapproachwasdevelopedin1990.Waldingeretal.

took variables on the individual and the context level (market conditions, access to

ownership) into account (1990, p. 22). The interactive approach as proposed by

Waldinger et al. (1990) is limited and themixed embeddedness approach further the

approachfromWaldinger.Themainargumentofmixedembeddednessisthatthetype

ofwelfarestate(Esping-Andersen,1990)itselfhasanimpactontheself-employment(of

migrants).Thetypologyofopportunitystructures isavaluable instrumentfortworea-

sons: 1) tomeasure and compare types of self-employedpersons, and 2) to compare

themsystematicallyacrossdifferenttypesofwelfarestates.Inaddition,thetypologyof

opportunity structures opens up the possibility to show and compare economic

change(s)ofself-employmentinacountry(developmentovertime).

In1999thefirstarticleonmixedembeddednesswaspublished(Kloosterman,Vander

Leun,&Rath,1999),andsincethenKloostermanandRathhaveconstantlybeendevel-

opingthisapproach.Theirmainideaisthatcapitalistsocietiesarelinkedtothemarket,

andmarketsplaysacentralroleforinstanceforjobcreation(Kloosterman&Rath,2011,

p.92).Thedifferencebetweenthe interactivemodelofWaldingeretal.andKlooster-

man and Rath is that the latter includemigrants affecting the conditions of the host

country. Furthermore, they point out that migrants can use and expand opportunity

structurestoincludeinterestssuchasapplyingforfundingandimprovinginfrastructure.

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KloostermanandRathdevelopedGranovetter’sconceptofrelationalandstructuralem-

beddednessbyarticulatingthefactthatdifferentcapitalisticeconomiesproducediffer-

entopportunitystructuresandstimuli(Kloosterman&Rath,2011,p.103).Additionally,

theyproposedEsping-Andersen’sconceptandhisthreewelfareregimestoincludedif-

ferentvariablesonmicro,mesoandmacroleveltoexplainmigrantself-employment.

Opportunitystructuresaremeasuredbytwodimensions:growthpotentialandhuman

capital.Thegrowthpotential/marketrepresentsthedemandsideandhumancapitalthe

supplyside.Onthedemandsidechangesinurbaneconomies(outsourcing,fragmenting

ofmarkets,serviceeconomy)openupopportunitiesformigrantentrepreneurs.Onthe

supply side more highly educated migrants (especially from non-OECD countries) are

movingtoOECDcountries.Changesinimmigrationrules(e.g.EUenlargements)makeit

possible for highly educated people to immigrate.Modifications in the economy (e.g.

more post-industrial activities) increase the chances of social upwardmobility formi-

grantsthroughself-employment.Onefocusofthetheoreticalapproachistherelation-

ship between (migrant) entrepreneurship and social upwardmobility.7 The twomen-

tioneddimensions,namelyhumancapitalandgrowthpotential,allowtheidentification

ofmarketsegments.Humancapital isdivided into twocharacteristics:highthresholds

andlowthresholds,andgrowthpotentialisdividedintotwocharacteristics:stagnating

andexpandingmarkets.Fromthesefourcharacteristicsfourtypesofmarketsresult:1)

stagnating,high-skilledmarkets,2)vacancy-chainmarkets,3)post-industrial/high-skilled

marketsand4)post-industrial/low-skilledmarkets(Kloosterman&Rath,2011,p.93).8

Thetypologywasdevelopedformarketsandnotforindividuals.Theempiricalreachof

the mixed embeddedness approach in terms of quantitative evidence has not been

measuredbecausemeasurementwasnottheintentionoftheapproach.However,from

mypointofview, theapplicationof the typology is interesting tocomparechancesof

beingself-employedbythehighlyandnon-highlyeducated.Severalstepsareneededto

applythetypologytobeabletoempiricallyapplythemixedembeddednessapproach.

Firstly,thetypologyhastobetransformedtobeapplicable.Thestepstotransformthis

7 Kloosterman and Rath leave it open as to what they mean with social upward mobility. To sum-marise, in my opinion there is the need to calculate inter- and intergenerational mobility. 8 The types will be explained in more detail later.

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approachwillbepresentedlaterinthispaper.Secondly,mesoandmacrolevelcircum-

stances could be analysed to compare different regions or countries. These steps are

beyondthescopeofthispaper,butareneededtofullyapplytheapproach.

Withinthispapertheinfluenceofembeddednessfactors,forinstancetheethniccontext

(country of birth) and the regional business and public regulatory framework (labour

marketareasbyusingurbanisationdegrees)willbetested.Thelabourmarketsituation

of highly educated self-employed persons in the age range of 25 to 649 having post-

industrialoccupationswillbeanalysedbyusingmicrocensusdatafrom2015.Theanaly-

siswillbeconductedforwomenandmenseparatelybecausedifferencesoccur(forin-

stance,menhavehigherself-employmentratesthanwomen).

Methodanddata

Thestartingpointof thisstudy is thetheoreticalapproachofmixedembeddedness. It

provides two issues relevant for this research: 1) several independentvariableswhich

might explain self-employment ofmigrants, andmost importantly for this research 2)

thetypologyofopportunitystructure.

Iwillbeginwiththedeductionofvariables.Thevariableswerededucedconsecutivelyto

notoverloadthelogitregressionmodel.Foursuccessivepartstepswerefollowedbased

on the assumption that, next to the variables already included in the theoretical ap-

proach,contextvariablesarerelevant(Welter,2011).Therefore,thefirststepwasdedi-

cated to the deduction of determinants on self-employment from the theoretical ap-

proachwhile, inadditiontothat,twoqualitativemethodswereusedtoderivecontext

variables (expert interviews and explorative interview). In a second step expertswere

interviewed on self-employment of migrants. BetweenMarch andMay 2015 in total

nineexpertinterviews10wereconducted.Researchers,politiciansandconsultantsliving

inAustria,whoareworkingorhaveworkedonmigrantentrepreneurship issues,were

9 It is assumed that persons older than 25 have finished their studies. 10 One interview was with two experts at the same time. In another interview the expert was not talking about the influence of variables on self-employment. In total, eight experts discussed this topic.

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interviewed.All interviewswere transcribedwithATLAS.ti.Aftercoding the interviews

importantvariablesonmigrantself-employmentwereidentified.Aftertheidentification

ofrelevantvariablesfromtranscribedinterviewsthevariablesweredoublecheckedto

ensurethatcategoriessuggestedbyexpertswerenotmissed.Oneexplorativeinterview

wasundertakentoevaluatethesituationofaself-employedperson.Therefore,thethird

step included the deduction of variables from the explorative interview. Lastly, in a

fourthstep,theinterviewswerecheckedalsoregardingadditionalinterestingvariables

whichshouldbetakenintoaccountandwhichhavenotbeenidentifiedbythetheoreti-

cal approach, the experts or in the explorative interview. The following illustration

showsthesourceusedandthederivedindependentvariables(table1).

Source Variablename

Theoreticalapproach Countryoforigin

Migrationgeneration(first/secondgeneration)

Urbansurrounding(urban/non-Urban)

Expertinterviews Age

Householdcontext(numberofchildren,maritalstatus)

Explorativeinterview Workinghours

Sex

Secondemployment

Analysisbasis Homeownership(flat,house)

Workingfromhome

Workingonweekends

Table1:Useddatasourceandthederivedvariables

Intotal,elevendeterminantsofself-employmentweretheoreticallyandempiricallyde-

rived.The theoreticalapproachprovides the followingvariables: countryoforigin,mi-

grationgenerationandurbansurrounding.Besidesthesevariables, theexpertsnamed

thevariablesofageandhouseholdcontext(numberofchildren,maritalstatus). Inthe

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explorative interview thevariables addressingworkinghours, sexand secondemploy-

ment cameup. Additionally, to the already identified variables the analysis basis pro-

videsthevariablesofhomeownership,workingfromhomeandworkingonweekends.

Theempiricalbasisfortheanalysisisthemicrocensus.Datafrom2004to2015areused.

The reason for this timeframe is theavailabilityof thedataset (inMarch2016 theda-

tasetforthereferenceyear2015wasavailable)andthecharacteristics(from2004on-

wardthecountryoforiginisavailable).ThemicrocensusisAustria'slargestrepresenta-

tivesamplesurvey.Quarterlyabout22.500householdsarerandomlyselected.Thedata

base is thecentralpopulationregister.Thesampleplanof themicrocensuswasmodi-

fied in2004.Thesamplingerror forextrapolatedfrequenciesofpersonsremainedthe

sameovertheyears.Extrapolatedvaluesupto6.000persons(fromafluctuationrange

ofapproximatelyathirdofthevalue)areconsideredtobehighlyrandom.Valuesbelow

3.000(fromafluctuationrangeofapproximatelyhalfofthevalue)cannotbeinterpret-

edasstatisticallysignificant(Meraner,Gumprecht,&Kowarik,2015).

Secondly,thetransformationofthetypologyofopportunitystructureswillbepresent-

ed. The authors of the theoretical approachpropose twodimensions of the typology,

namelythemarketandhumancapital.Here,thesuggestionistotransformthemarket

dimensionintoanindividualdimensionusingtheoccupationalstatustomakethetypol-

ogyapplicable.Usingtheoccupationalstatushastwoadvantages:firstly,itisanindivid-

ual variable, and secondly the post-industrial class scheme of Esping-Andersen (1993)

canbeusedtoclassifyalloccupationstotheFordistandpost-industrialactivities.11The

occupationoftheself-employedpersonwillbemeasuredbytheInternationalStandard

ClassificationofOccupation(ISCO).BasedontheISCO2008one-digitcode,alloccupa-

tions will be coded into two dimensions: Fordist and post-industrial occupations

(Leiulfsrud,Bison,&Solheim,2010).Humancapitalwillbemeasuredbythehighested-

ucationandcodedintohigh(academicdegree)andnot-high(noacademicdegree)edu-

cation.12Table2presentsthetransformedtypology.

11 Fordist/industrial workers are, for instance, managers, skilled or unskilled production workers. Post-industrial activities are, for instance, scientists. 12 The term ‘not-high’ is used deliberately because it is supposed that the term ‘low’ is hierar-chical.

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Occupation

Fordist Post-industrial

EducationHigh Type1:high/Fordist Type2:high/post-industrial

Not-high Type3:not-high/Fordist Type4:not-high/post-industrial

Table2:Transformedtypologyofopportunitystructures

Typicalexamplesforthetypesare:Type1)(restaurant)managers,Type2)medicalprac-

titioners, building architects, lawyers, Type 3) (restaurant) managers, roofers, house

builders, and Type 4) shop supervisors, buyers, hairdressers, beauticians and related

workers.

Results

Threemain findings are of relevancewhen applying the transformed typology: 1) the

sharesofthetypesfromatimeperiodofelevenyears(2004to2015),2)thedevelop-

mentoftheproportionofthetypesovertime,and3)thelogitregressionofthedeter-

minantsonself-employmentofhighlyskilledpersonsforthereferenceyear2015.

Figure1demonstratesthesharesofself-employedpersonswithmigrationbackground

for the four typesover time.Not-highlyeducatedpersonswithpost-industrialoccupa-

tionshavethehighestincreasefrom2007to2015(2007:38.5percentand2015:47.9

percent).Duringthisseven-yearperiodthissegmenthasgrownbyalmost10percent.

Thesecond largestsharehavethepersonswithhigheducationandpost-industrialoc-

cupations(highestincreasefrom26.9percentin2009to29.9percentin2015).Thereis

nohighgrowth in this segment.PersonswithFordistoccupationsandmigrationback-

groundwithbothhighandnot-higheducationhavethelowestsharesin2015.Thede-

velopmentof thenon-highlyeducatedpersonswithFordistoccupationsandmigration

backgroundisinterestingbecausethisgrouphas31.6percentagepointsin2004andin

2015only20.1percent.Thissegmentisthusshrinkingby11.4percent.Comparedwith

personswithoutamigrationbackground,thissegmentshrinksevenmorestronglyinthe

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comparison between 2004 and 2015 for persons without migration background. In

2004,thisgrouprecorded41.1percentandin201523.9percent.Thiscorrespondstoa

shrinkageofminus17.2percent.

The proportion of type 2 does not grow. Only 6.9 percentage points of growth are

achieved forpersonswithoutmigrationbackgroundand zerogrowth forpersonswith

migrationbackground.Withregardtothedistributionofthefourtypesovertime,itbe-

comesclearthatthetype4‘not-highlyeducatedandpost-industrialoccupations’occu-

piesthelargestsharesince2007,asisthecaseforpersonswithmigrationbackground

(41.2per cent in2007and50.3per cent in2015).The secondhighest value,butonly

from2013,belongstotype2‘highlyeducatedandpost-industrialoccupations’(25.2per

centin2013and24.1percentin2015).Thevaluesfortype1‘highlyeducatedandFord-

ist’occupythelowestvalue(2.6percentin2004and1.7percentin2015).Thefollow-

ingfiguresillustratetheresultsformigrantsandnatives.

Figure1:Sharesofself-employedmigrantsbytypes2004to2015

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

90,0%

100,0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sharesofself-employedmigrantsbytypes2004to2015(inpercent)

Type1:high/fordist Type2:high/post-industrial Type3:not-high/fordist Type4:not-high/post-industrial

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Figure2:Sharesofself-employednativesbytypes2004to2015

Figures3and4showthedevelopmentovertimeoftheself-employmentrate13ofper-

sonswithandwithoutmigrationbackgroundfrom2004to2015.From2004to2007da-

tadoesnotincludemigrationbackground.Fortheseyearsonlypersonsbornoutsideof

Austriaarereferredtoasmigrants.Theself-employmentrateofmigrantswithhighed-

ucationandFordistoccupationisdecreasingfrom2004to2015(-6.7percent).Figure3

also shows that there is no significant increase of the self-employment rate for other

types.Theself-employmentrateofnativeswithhigheducationandFordistoccupation

13 The self-employment rate is an important concept for comparing self-employment of different groups and is defined as the percentage share of total employment accounted for the self-employed (Clark, 2014). The total employment consist of persons who are employed and unemployed. Addi-tionally, economic branches of agriculture, forestry and fishing/public administration are excluded from the scope.

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

90,0%

100,0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sharesofself-employednarvesbytypes2004to2015(inpercent)

Type1:high/fordist Type2:high/post-industrial Type3:not-high/fordist Type4:not-high/post-industrial

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isdecreasingfrom2004to2015(-8.5percent).Thisdecreaseishigherthanformigrants

oftype1.Aswellasforthemigrants,theself-employmentrateofothertypesisnotin-

creasingsignificantly.Apossiblereasonforthedecreaseoftheself-employmentrateof

type1 is thefinancialcrises.Thestagnatingself-employmentratesofothertypesmay

havetheircausessuchaslowincentivesforcreatingortakingoverabusiness.

Thegroupwiththehighestself-employmentratehashigheducationandpost-industrial

occupations.Forthisgroupthedifferencesbetweenpersonswithandwithoutmigration

backgroundaremarginal.In2015therateforbothpersonswithandwithoutmigration

backgroundwasaround20percent(seefigures3and4).

Figure3:Self-employmentrateofmigrantsbytypes2004to2015

0,0

5,0

10,0

15,0

20,0

25,0

30,0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Self-employmentrateofmigrantsbytypes2004to2015

Type1:high/fordist Type2:high/post-industrial Type3:not-high/fordist Type4:not-high/post-industrial

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Figure4:Self-employmentrateofnativesbytypes2004to2015

After thisdescriptiveanalysis thegroupwith thehighest self-employmentquote (high

education/post-industrialoccupations)willbeanalysedby logitregressionsfortheref-

erenceyear2015.Thetestedvariablesareinfourlevels,namelyattheindividual,work,

spatial and household level. They are age, country of birth (including second genera-

tion),part-time,age,secondaryjob,workingfromhome,workingonweekends,popula-

tiondensity,homeownershipandmarried/children.Personsyoungerthan25wereex-

cludedfromthesamplebecauseitisassumedthatpersonsolderthan25havefinished

theirstudies.Thecalculationsarepresentedseparatelyformenandwomentoshowthe

different effects of the chosen variables. The dependent variable is self-employed or

employed(notself-employed).Self-employedpersonsmayormaynothaveemployees

ortheyarefreelancers.

0,0

5,0

10,0

15,0

20,0

25,0

30,0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Self-employmentrateofnarvesbytypes2004to2015

Type1:high/fordist Type2:high/post-industrial Type3:not-high/fordist Type4:not-high/post-industrial

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Table3:Characteristicsofhighlyskilledindividualsage25-64withpost-industrialoccu-

pations

Characteristics on the individual levelAge (<40 years) 94.133 52,5% 16.657 29,7% 213.367 55,6% 29.359 31,6%Age (>40 years) 85.022 47,5% 39.460 70,3% 170.615 44,4% 63.422 68,4%Country of birthAustria 128.432 71,7% 42.813 76,3% 280.505 73,1% 67.414 72,7%Germany 13.211 7,4% 3.644 6,5% 23.643 6,2% 6.580 7,1%EU15 (without Austria and Germany) 8.265 4,6% 1.673 3,0% 14.098 3,7% 2.193 2,4%EU25 (enlargment countries 2004) 6.043 3,4% 2.168 3,9% 15.412 4,0% 4.706 5,1%EU2728 (enlargment countries 2007 and 2013) 3.971 2,2% 961 1,7% 10.497 2,7% 1.475 1,6%Ex-Yugoslavia/Turkey 5.378 3,0% 593 1,1% 10.181 2,7% 1.256 1,4%Second Generation 3.418 1,9% 552 1,0% 7.331 1,9% 1.729 1,9%Europe other 554 ,3% 705 1,3% 4.149 1,1% 1.602 1,7%Not Europe 9.885 5,5% 3.009 5,4% 18.166 4,7% 5.826 6,3%Characteristics on the work levelFull-time 153.274 85,6% 42.917 76,5% 270.622 70,5% 58.770 63,3%Part-time (<36 hours) 25.882 14,4% 13.200 23,5% 113.359 29,5% 34.011 36,7%No secondary job 161.735 90,3% 50.191 89,4% 351.283 91,5% 83.213 89,7%Secondary job 17.421 9,7% 5.926 10,6% 32.699 8,5% 9.568 10,3%Working from home (> 50% of the working time) 151.156 84,4% 34.432 61,4% 310.957 81,0% 57.577 62,1%Not working from home 28.000 15,6% 21.684 38,6% 73.024 19,0% 35.204 37,9%Not working on saturdays and/or sundays 102.922 57,4% 17.122 30,5% 224.745 58,5% 33.948 36,6%Working on saturdays and/or sundays (> once a month) 76.233 42,6% 38.995 69,5% 159.236 41,5% 58.833 63,4%Characteristics on the spatial levelNo high population density 90.899 50,7% 27.759 49,5% 191.945 50,0% 44.541 48,0%High population density 88.257 49,3% 28.358 50,5% 192.036 50,0% 48.240 52,0%Characteristics on the household levelNo ownership of flat(s) or house(s) 83.920 46,8% 20.845 37,1% 180.770 47,1% 36.390 39,2%Ownership of flat(s) or house(s) 95.236 53,2% 35.271 62,9% 203.211 52,9% 56.391 60,8%Not married and/or children (<18) 124.900 69,7% 41.168 73,4% 275.746 71,8% 66.642 71,8%Married and children (<18) 54.256 30,3% 14.949 26,6% 108.235 28,2% 26.139 28,2%Total 179.156 100,0% 56.117 100,0% 383.982 100,0% 92.781 100,0%

Women MenNot self- self-employed Not self- self-employed

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Table3showsthequantitiesoftheselectedvariablesbysexandemploymentstatusfor

highlyskilled individualsaged25to64withpost-industrialoccupations.14Thedistribu-

tionscanbedescribedasfollows:

1. Age: Self-employed persons are older than 40 years (women: 70.3 per cent;men:68.4percent).

2. Countryofbirth:Thehighestpercentageofself-employedpersonsareborninAustria from both genders. The second largest group was born in Germany(womenandmen).15

3. Part-time:Whenconsideringworkinghours,menaremorelikelytoworkpart-timethanwomen(women:23.5percent;men:36.7percent).16

4. Second job: 90per centof the self-employed (womenandmen)haveno sec-ondaryjob.

5. Working fromhome: 60per centof the self-employed (womenandmen) areworkingmorethan50percentfromhome.

6. Workingonweekends:Over60percent(women:69.5percent;men:63.4percent)areworkingonceormorethanonceamonthonweekends.

7. Populationdensity:Moreself-employedwomenthanmen live inareaswithahighpopulationdensity,whichmeansincities(women:54.2percent;men:50.5percent).

8. Homeownership:Morethan60percent(women:62.9percent;men:60.8percent)ownaflatorahouse.

9. Married/children: The majority of the self-employed are not married and/orhavenochildrenyoungerthan18years(women:73.4percent;men:71.8percent).

Theresultsforthelogisticregressionshowtheinfluenceonself-employmentseparately

forwomenandmen(seetable4and5).Forexample,intable4womenborninoneof

14Economicbranchesconsideredirrelevantforthestudyareexcluded(agriculture,forestryandfishing/publicadministration).15Extrapolatedvaluesupto6.000persons(fromafluctuationrangeofapproximatelyathirdofthevalue)areconsideredtobehighlyrandom.Valuesbelow3.000(fromafluctuationrangeofapproximatelyhalfofthevalue)cannotbeinterpretedasstatisticallysignificant(Meraner,Gum-precht,&Kowarik,2015).16Thisresultmaybeanexpressionofthe interestsofemployedpersonstowork less.22.9percentofallemployedmenand15.4percentofallemployedwomenwould liketoreducetheirworkinghours(StatistikAustria,2015b,p.43).Asaself-employeetheyhavethechoiceandobvi-ouslymenaremorelikelytoworklessthanwomen.Itwouldbeinterestingtoknowhowmuchmenearnincomparisontowomen.Iftheyearnmorethiswouldproperlyexplainwhymenworklesshoursthenwomen.

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the EU2517, Germany or non-European countries18, as well as the second generation,

have higher likelihoods of being self-employed. Also, women who are older than 40,

work part-time from home or onweekends, or own a flat or a house, have a higher

chancetobeself-employed.Incontrast,theresultsofthelogisticregressionformenare

differentforsomevariables(seetable5).Thevariableofbeingborn inEuropeother19

has a significant positive effect on self-employment for men. Being born in Ex-

Yugoslavia/Turkey20, as well as having a second job, lowers the chance to be self-

employedformen.Inaddition,thevariablebeingmarriedand/orhavingchildrenhasa

negativeeffectontheprobabilityofbeingself-employedformen.Similaritiesbetween

women andmen occur for the variables age, part-timework, homework,working on

weekend(s) and home ownership. Those variables have significant positive effects on

theprobabilityofbeingself-employed.Differencesoccurforwomenandmenseparated

bycountryoforigin.Thatmeanstheresultsaredifferentifdifferentiatedbygenderand

country of origin. For women from Germany, EU25 and second generation, self-

employmentisachance.Possiblereasonsforthehigherchancesofbeingself-employed

aretheglassceilingeffectsincompanies,thewish/needforflexibleworkinghours,the

wishtobetheirownbossorthewishtorealiseanidea.Intotal,highlyskilledmenwith

post-industrialoccupationshavehigherchancesofbeingself-employedthandowomen

ofthisscope.Nosignificanteffectsarevisibleforareaswithhighpopulationdensityfor

bothwomenandmen.

17TheEU25countriesarethosecountrieswhichjoinedtheEUin2004(Cyprus,CzechRepublic,Estonia,Hungary,Latvia,Lithuania,Malta,Poland,SlovakiaandSlovenia).18Thenon-EuropeancontinentsareAfrica,NorthAmerica,SouthAmerica,AsiaandOceania.19 The Europe other countries are mainly Switzerland and countries classified with “other Europe-an countries” in the microcensus. 20 These countries are taken together because all of them are in the tradition of the guest worker policy.

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Table4:Logisticregressionofself-employedhighlyskilledwomenaged25-64withpost-

industrialoccupationsinAustria

Characteristics on the individual levelAge (>40 years) 1,045 *** 1,068 *** ,985 *** ,990 *** ,949 ***Country of birthAustria Referenz Referenz Referenz Referenz ReferenzGermany ,433 *** ,458 *** ,461 *** ,503 ***EU15 (without Austria and Germany) -,118 n.s. -,046 n.s. -,052 n.s. -,035 n.s.EU25 (enlargment countries 2004) ,543 *** ,618 *** ,610 *** ,661 ***EU2728 (enlargment countries 2007 and 2013) -1,022 ** -,833 n.s. -,842 * -,789 n.s.Ex-Yugoslavia/Turkey ,024 n.s. ,021 n.s. ,003 *** ,063 n.s.Second Generation ,643 ** ,747 *** ,736 *** ,750 ***Europe other ,419 n.s. ,509 n.s. ,505 n.s. ,551 *Not Europe ,553 *** ,529 *** ,509 ** ,541 ***Characteristics on the work levelPart-time (<36 hours) ,544 *** ,548 *** ,525 ***Secondary job ,071 n.s. ,069 n.s. ,069 n.s.Working from home (> 50% of the working time) ,383 *** ,389 *** ,374 ***Working on saturdays and sundays (> once a month) ,453 *** ,454 *** ,456 ***Characteristics on the spatial levelHigh population density ,073 n.s. ,149 n.s.Characteristics on the household levelOwnership of flat(s) or house(s) ,213 **Married and children (<18) ,053 n.s.Constant -2,295 *** -2,394 *** -2,971 *** -3,007 *** -3,159 ***Observations 4.611 4.611 4.611 4.611 4.611degree of freeedom 1 9 13 14 162LogLikelihood 3885,687 3849,836 3755,451 3754,727 3749,525Cox & Snell R Square 0,033 0,04 0,06 0,06 0,061Nagelkerke R Square 0,056 0,069 0,102 0,102 0,104

Model D Model EModel A Model B Model C

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Table 5: Logistic regression of self-employed highly skilledmen aged 25-64with post-

industrialoccupationsinAustria

Conclusions

Toconclude,theaimofthispaperwastomakeacontributiontotheory,alsoincluding

genderdimension,bytransformingthetypologyofopportunitystructureandtheexpla-

nationoffactorsinfluencingself-employmentofmigrantsandnatives.Presentedtypes

Characteristics on the individual levelAge (>40 years) 1,021 *** 1,022 *** ,985 *** ,991 *** ,972 ***Country of birthAustria Referenz Referenz Referenz Referenz ReferenzGermany -,373 *** -,296 * -,297 * -,242 n.s.EU15 (without Austria and Germany) -,432 * -,395 n.s. -,400 n.s. -,381 n.s.EU25 (enlargment countries 2004) ,048 n.s. ,098 n.s. ,093 n.s. ,201 n.s.EU2728 (enlargment countries 2007 and 2013) -,602 n.s. -,421 n.s. -,434 n.s. -,419 n.s.Ex-Yugoslavia/Turkey -,847 *** -,836 *** -,848 *** -,724 **Second Generation -,344 n.s. -,419 n.s. -,425 n.s. -,419 n.s.Europe other ,983 ** 1,227 *** 1,232 *** 1,431 ***Not Europe -,147 n.s. -,242 n.s. -,259 n.s. -,126 n.s.Characteristics on the work levelPart-time (<36 hours) ,935 *** ,930 *** ,906 ***Secondary job -,389 *** -,388 *** -,375 ***Working from home (> 50% of the working time) ,660 *** ,660 *** ,654 ***Working on saturdays and sundays (> once a month) 1,034 *** 1,036 *** 1,029 ***Characteristics on the spatial levelHigh population density ,048 n.s. ,106 n.s.Characteristics on the household levelOwnership of flat(s) or house(s) ,258 ***Married and children (<18) -,278 ***Constant -1,734 *** -1,670 *** -2,547 *** -2,568 *** -2,667 ***Observations 4.452 4.452 4.452 4.452 4.452degree of freeedom 1 9 13 14 162LogLikelihood 4867,003 4838,44 4450,887 4450,509 4433,735Cox & Snell R Square 0,042 0,048 0,127 0,127 0,131Nagelkerke R Square 0,062 0,071 0,187 0,188 0,192

Model A Model B Model C Model D Model E

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ofself-employedpersonswithinthistypologyhavebeenappliedandanalysedbyusing

microcensusdataofthereferenceyears2004to2015.Themainquestionwashowthe

typologycanbeappliedandwhichvariablescanbederived.Additionally,expert inter-

viewswereusedtocontextualisethetopicandcontributetotheselectionofvariables

whichwereanalysed.Theyshowedthatbothvariablegroupsontheindividualandthe

context level are relevant, and they identified the individual level as being of greater

significance.

Given the points that the likelihoods are highest for highly skilled personswith post-

industrial occupations who are working part-time, are older than 40, working from

home,workingonweekendsandareownersofflat(s)and/orhouse(s),self-employment

inAustriaseemstobeachanceforflexibilityofworkingtimeandspace.Also,theresults

showthat,iftheyownaflatorahouse,thechanceofbeingself-employedishigherfor

bothmenandwomen.Isthisbecauseofahighsecuritybehaviourofthepersons?What

arethemechanismbehindtheself-employmentphenomena?Anotherconclusionisthat

thevariablesageandsexhaveahigherinfluenceonbeingself-employedthanthevaria-

ble countryof birth/migrationbackground.Whether the influenceof age (beingolder

than40)isanothersignforthehighsecuritybehaviourofthepersons,orwhetheritisa

resultofagelabourmarketdiscriminationcannotberatedwiththisresearch.

Thestudyshowsthatboththetransformation/applicationof thetypologyandthede-

tailedregressionanalysisgivedetailedinsightsonself-employmentinAustria.Thetrans-

formed typologymakesacontribution to theory,and theapplicationover timeshows

thegrowingandshrinkingsegmentsofself-employment.Ascanbeseen,twotypesare

ofhighrelevance (highlyandnot-highlyeducatedpersonswithpost-industrialoccupa-

tions). To increase the self-employment rate, the largest group (not-highly educated

withpost-industrialoccupations)andthegroupwiththehighestself-employmentrate

(highlyeducatedandpost-industrialoccupations)havetobeaddressedbypolicymak-

ers.

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