SELF-EMPLOYMENT IN SINGAPORE : CHOICE AND DETERMINANTS

Abstract

In this report, "Self Employment in Singapore: Choices and Determinants", I shall present an empirical study on the determinants of self-employment in Singapore. I believe this report is a pioneering attempt to conduct an in-depth study on the subject. The main focus of this report is to study the determinants which affect a self-employed decision to either continue or quit self­employment. I have looked at determinants such as macro-economic situations, educational level, age, income, years in self-employment, retirement or retrenchment or resignation from previous jobs, and higher educational attainment. This study makes use of primary data which I collected by conducting a series of interviews on a few selected groups of self-employed people. This is necessary, as secondary data is not available in any published statistical books of Singapore.

For this study, the dependent variable (decision on whether to continue or quit self employment) has only binary values. Hence I have made use of a well-known econometric technique, the logistic regression, to conduct analysis. A brief discussion on logistic regression is also included in this report.

Apart from my main study on self-employment determinants, I shall also present other interesting findings from my research and survey. I shall present various recent trends of self­ employment in Singapore through my analysis of data from Singapore Annual Census on Labour Force. I shall also present interesting findings about the self-employed through case studies and general survey conducted by myself.