The Determinant Factors of Self-employment in the Iranian Economy

Shahabadi, Abolfazl; Khatami, Tayebeh

The Determinant Factors of Self-employment in the Iranian Economy

Authors

Abolfazl Shahabadi ¹

Tayebeh Khatami ²

¹ Assistant Professor, Department of Economics, Faculty of Economics and Social Science, Bu-Ali Sina Universtiy, Hamedan, Iran, . (Corresponding Author)

² M.A. Student, Bu-Ali Sina Universtiy, Hamedan, Iran,

Abstract

Self-employment is a crucially important subject in an economy, especially for a country with high unemployment rate. This paper studies the determinant factors of self employment in Iran during 1996-2006 using a panel data method. The results show that unemployment rate per province, the ratio of 15-65 age bracket to total population of the country, and the share of each province to total GDP aren't statically significant. While the ratio of urban population to total population for each province has a negative coefficient in self-employment equation, the ratio of R&D expenditure to GDP and literacy rate has a positive one.

Keywords

Self-employment

Unemployment rate

J23

Q16

R&D expenditure

Panel data JEL Classification: E24

20.1001.1.17356768.1392.13.1.7.9

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