Job Stability Preference over Self-Employment

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In Simple Words

Imagine choosing between starting a risky street-food cart or taking an entry-level office job with a guaranteed monthly salary—despite the freedom of running a cart, most young workers prefer the office job because predictable income shields them from severe financial shocks.

Observed job preferences in Addis Ababa

Seeking permanent work
64% of respondents
Seeking temporary work
11% of respondents

Observed survey responses. Selected preferences; 25% had no contract-type preference. No treatment effect is estimated.

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Research question

Active labor market programs frequently promote self-employment or gig work under the assumption that youth prefer entrepreneurial independence, ignoring strong baseline preferences for stable wage employment.

Participants

N = 3,052 youth job-seekers (aged 18–29, high school educated) in Addis Ababa, Ethiopia.

Study Design

Baseline survey elicitation of preferred search contract types, job quality rankings, and reasons for non-search.

Results

64% of youth searched specifically for permanent jobs (versus 11% seeking temporary work), work stability was the second most cited desirable job characteristic (20.4% versus 6.7% for working hours), and only 5.4% cited starting a business as a reason for non-search.

Takeaway

Prioritize formal wage-employment matching programs over self-employment subsidies when designing active labor market policies for urban youth.

Source and citation

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Plain-English glossary

Original explanations, informed by the references below. Examples are illustrations, not data from the studies above. The research text stays unchanged.

Baseline

The starting measurements in a study. Researchers use these to compare what participants were like at the start with what happens later.

ExampleBefore a training programme starts, researchers measure workers’ earnings. That first measurement is the baseline.

GET-IT glossary · Baseline characteristics ↗Read more about baseline →

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