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<p>Self-employment is emerging as a dynamic alternative to traditional wage and unpaid labour, offering opportunities for individuals in the workforce—such as contributing family workers—to move from unpaid work to more flexible and autonomous economic activities. It significantly drives economic growth by creating new earning opportunities and reducing unemployment rates in developing countries. This study explores the dynamics of self-employment in Bangladesh, focusing on the key determinants driving the likelihood of being self-employed compared to unpaid worker. Using data from the 2022 Quarterly Labour Force Survey, this study employs a Multinomial Logit Model (MNL) for the analysis. The findings highlight that factors such as age, education, household wealth, household headship, and urban residence positively influence the choice of self-employment over unpaid labour. In contrast, factors such as being female, having disability, larger household size, greater land holding, and residing in Rajshahi,&#xa0;Rangpur, and Sylhet divisions reduce this likelihood. The findings suggest that education and wealth are particularly crucial for individuals engaged in self-employment, while gender disparities persist, with women facing considerable challenges in being engaged in self-employment vis-à-vis unpaid labour. Urban residence provides better opportunities for economic independence compared to rural regions.</p>

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From Unpaid Labour to Enterprise: Factors Shaping the Likelihood of Self-Employment and Employer Status in Bangladesh

  • 期刊论文

  • 发表日期：

    2026年3月1日

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  • Ekramul Hasan,
  • Dipa Das,
  • Md. Tuhin Ahmed

摘要

Self-employment is emerging as a dynamic alternative to traditional wage and unpaid labour, offering opportunities for individuals in the workforce—such as contributing family workers—to move from unpaid work to more flexible and autonomous economic activities. It significantly drives economic growth by creating new earning opportunities and reducing unemployment rates in developing countries. This study explores the dynamics of self-employment in Bangladesh, focusing on the key determinants driving the likelihood of being self-employed compared to unpaid worker. Using data from the 2022 Quarterly Labour Force Survey, this study employs a Multinomial Logit Model (MNL) for the analysis. The findings highlight that factors such as age, education, household wealth, household headship, and urban residence positively influence the choice of self-employment over unpaid labour. In contrast, factors such as being female, having disability, larger household size, greater land holding, and residing in Rajshahi, Rangpur, and Sylhet divisions reduce this likelihood. The findings suggest that education and wealth are particularly crucial for individuals engaged in self-employment, while gender disparities persist, with women facing considerable challenges in being engaged in self-employment vis-à-vis unpaid labour. Urban residence provides better opportunities for economic independence compared to rural regions.