Abstract:

In this study, determinants of self-employment preferences of individuals employed in Turkey were examined. For this purpose, a two-step method was used to analyze the data by using the TURKSTAT Household Labor Force Survey data. Since the data set also includes individuals other than employers, Heckman sample selection was applied primarily to avoid sample selection bias. Existence of sample selection bias and necessity to use this method is determined. Then the probit method was used for all individuals, men and women. According to the findings, the region, age, education level, marital status, enrollment to social security, the possibility of working at home and working time were determined as effective factors. Elimination of regional disparities, encouraging young people, making arrangements in education system to encourage self-employment, and reducing working time especially for women may be effective for individuals to choose self-employment.

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