The Changing Effect of Education on Asian Immigrants' Self‐Employment

Abstract

This article examines whether the post‐1990 Asian immigrants have a lower likelihood of being self‐employed than their counterparts in the 1970s–1980s immigrant cohort. More important, it investigates whether the relationship between education and self‐employment changes across the two immigrant cohorts. The authors framed these questions in the context of the changing U.S. immigration policy and used the ethnic and class recourses thesis and the thesis emphasizing immigrants' disadvantages for employment in the general labor market as two major theoretical orientations. Data come from the 1990 Census 5 percent sample and the 2007–2011 American Community Survey 5‐year sample. Findings from logistic regression analyses show that the second‐cohort Chinese, Asian Indian, and Korean immigrants have a lower likelihood of being self‐employed than their first‐cohort counterparts. Findings further show that education has a positive effect on the likelihood of self‐employment for the first‐cohort Asian Indian, Filipino, and Korean immigrants. For the second cohort, education has a negative effect on the likelihood of self‐employment for all Asian immigrant groups. The authors discussed the implications of these findings and concluded that well‐educated second‐cohort Asian immigrants face fewer disadvantages in finding their occupations commensurate with their educational level in the general labor market than their first‐cohort counterparts.