Author:Olumide Taiwo

Publication Date: November, 2012

Keywords: Employment Choice; Mobility; Multisectoral Labor Markets; Self Employment

JEL Classifications: J01, J21, J24, N37, O12, O17

This paper examines employment choice and occupational mobility using data from Ghana. In amodel that incorporates capital market failure, credit constrained individuals draw selfemploymentcapital from family asset. The empirical findings validate the predictions of thetheoretical model. The data shows very low rates of mobility across sectors and that workers infamily enterprise are the most mobile while self-employed workers are the least mobile. I findno robust evidence that wage earnings ease liquidity constraints. The findings suggest that bothliquidity and skill transferability constraints are important for mobility.