Self-Employment Dynamics amid High Unemployment: An Empirical Analysis of Transitional Labour Market in India

Abstract

There is a high unemployment rate in India, and self-employment is considered a way to create more jobs and stimulate the economy. However, personal and family characteristics and occupational structure play a role in determining who is likely to pursue self-employment. We conducted a study to assess the probability of Indian youth choosing self-employment over regular-wage employment. Our findings show that females living in rural areas and married individuals are more likely to choose self-employment than their male, urban, and unmarried counterparts. Education is also a factor, as those with higher education tend to seek regular-wage employment. Certain occupations, such as technicians and clerical support workers, are less likely to pursue self-employment. To promote self-employment among youth, there should be a focus on enhancing entrepreneurial skills and capabilities.