Search results

Although essential to social welfare, unpaid domestic and care work is an increasingly scarce resource in modern societies. Despite the growing need, many households refrain from outsourcing their domestic chores to the market. Simultaneously, the household service sector is mostly characterised by low-qualification, informal jobs lacking quality and professional standards. Drawing on transaction cost theory, the present study aims to examine how trust problems deriving from the quality and professionalisation of domestic services can be overcome by also exploring the role of state subsidies in this context.

A factorial survey experiment in Germany (N = 4024) causally explores the effect of state-subsidised service vouchers, quality signals and professionalisation on preferences and willingness-to-pay for domestic services. The data were analysed using multilevel modelling techniques.

Hypotheses are mostly confirmed: strong quality signals help overcome trust problems, thus facilitating the demand for household services. Further, service vouchers can generate better pay for domestic workers while simultaneously reducing the costs for households.

The relevance of professionalisation and quality of service as important determinants of domestic service demand is revealed. However, the experimental survey design involves hypothetical scenarios.

The analysis offers insights into how to stimulate demand for household services and increase formal employment in a sector currently largely characterised by informal arrangements. It further shows how social policies can help secure quality and foster professionalisation by shifting paid domestic work from the informal to the formal economy.

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.