TY - RPRT AU - Cai, Zhengyu AU - Winters, John V. TI - Self-Employment Differentials among Foreign-Born STEM and Non-STEM Workers PY - 2017/Apr/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 10688 UR - https://www.iza.org/publications/dp10688 AB - This paper uses the American Community Survey to examine the previously overlooked fact that foreign STEM (science, technology, engineering, and mathematics) graduates have much lower self-employment rates than their non-STEM counterparts, with an unconditional difference of 3.3 percentage points. We find empirical support for differing earnings opportunities as a partial explanation for this self-employment gap. High wages in STEM paid-employment combined with reduced earnings in self-employment make self-employment less desirable for STEM graduates. High self-employment rates among other foreign-born workers partially reflect weak paid-employment opportunities. Public policy should encourage efficient use of worker skills rather than low-value business venture creation. KW - self-employment KW - immigration KW - foreign-born KW - college major KW - STEM KW - earnings ER -