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.