This report examines the effect of ethnic residential segregation on self-employment in Sweden. More specifically, it focuses on approximately 14,000 refugees from ten different countries who arrived in Sweden during the period 1990–1991. Refugees who immigrated to Sweden during this period were placed in various municipalities by Swedish authorities as part of a dispersal strategy. This report uses the fact that these newly arrived refugees did not initially decide for themselves on their place of residence to investigate the causal effects of the municipal conditions. The report primarily asks if refugees, who were placed in municipalities with more coethnics, as well as with more coethnics with certain traits, entered self-employment to a greater extent.