How kinship resources alleviate structural disadvantage: self-employment duration among refugees and labor migrants

Abstract

Economic integration of refugees remains a challenge for developed countries. Although refugees differ greatly from labor migrants in available resources and motivation toward self-employment, prevailing studies on minority and ethnic entrepreneurship tend to lump these different categories of migrants together. Based on theories of migrants’ economic embeddedness, the purpose of this paper is to analyze the extent to which family- and kinship-based resources affect self-employment duration among refugees and labor migrants. Based on Cox regression models, this longitudinal study estimates the self-employment duration of 10,519 refugees and 2,503 labor migrants starting businesses in Sweden in the period 2006–2012. Results reveal that while refugees are at a disadvantage to labor migrants in terms of self-employment duration, their higher level of family embeddedness in part helps them overcome these disadvantages. For refugees but not for labor migrants, co-location in an ethnic enclave also lowers the risk of them becoming unemployed after a spell in entrepreneurship. This original paper provides empirical and theoretical contributions to research on migrants’ self-employment success. It also discusses contributions for research on entrepreneurs’ social embeddedness and refugees’ entrepreneurship.