The goal of this paper is to examine Impact of the economical, cultural and Environmental variables such as unemployment rate, educational level and Share of rural, on the Iran self-employment rate.
We use panel information data for all provinces in Iran. Using data provided by the 1996 - 2003 period from central statistic of Iran. We find for most provinces there is negative relationship between the unemployment rate and Self- employment rate, and negative for educational level. Thus unemployment and Self-employment are alternative for together in Iran Labour Market. In Iran, increase of educational cause the promotion employment in public or wage sector. Other result in case of Iran is Positive effect on Self-employment rate such as share of rural population. However, in this paper I argue that Self-employment sector have to high employment capacity in Iran Labour market.