This paper investigates the ethnic dimension of self‐employment in the British labour market. It examines how both ‘push’ and ‘pull’ factors may lead members of non‐white, ethnic minority groups to enter self‐employment rather than paid‐employment. Push factors include discrimination in paid‐employment while pull factors refer to minority‐specific entrepreneurial opportunities. Data from the General Household Survey and 1991 Census are employed to evaluate the empirical relevance of these issues and to explore differences between ethnic groups. Evidence of both push and pull factors is found.
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D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. In relative terms, it is found that there was an improvement in the employment rates of most ethnic minority groups over the period, some of which could be explained by enhanced levels of observable characteristics. However, the employment gap between Whites and certain ethnic minority groups remains extremely large. Religion, local deprivation and educational qualifications are important influences on employment for many of these groups.JEL Classification: J15, J21, J7
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