Propensity for Self-Employment in a Model of Occupational Choice: Evidence from a Cohort of Recent University Graduates in Spain

Manuel Salas-Velasco ()
Additional contact information
Manuel Salas-Velasco: Department of Applied Economics, Faculty of Economics and Business, Universidad de Granada, Campus Cartuja, 18071 Granada, Spain

Sustainability, 2023, vol. 15, issue 4, 1-13

Abstract: This paper presents a microeconomic analysis of the occupational choices that individuals make after graduating from higher education. Specifically, a binomial logit model of the self-employment decision, which can be seen as a special case of a model of utility maximization, is estimated for a large, nationally representative sample of Spanish bachelor’s degree holders. The estimation of the logit model allows one to analyze the influence of the university degree and individual sociodemographic characteristics on the probability of becoming self-employed five years after graduation. Results show that graduates in Odontology, Physiotherapy, Architecture, Law, Fine Arts, Pharmacy, and Psychology are the most likely to become self-employed. Surprisingly, financially literate individuals (economics and finance-related undergraduate degree holders) are less likely to start their own businesses. The paper also shows that women are less likely to be self-employed than men, but those graduates whose mothers obtained a university degree have an increased likelihood of being self-employed. The paper highlights the need for career guidance for undergraduates contemplating a career in self-employment.

Keywords: self-employment; university graduates; Spain; Bologna reform; higher education; EILU2019 survey (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/4/3400/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/4/3400/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:4:p:3400-:d:1066677

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().