Self - Employment of rural youth in Thai Nguyen province

lf- employment affects the decision to maintain self-employment. Creating jobs for rural youth in Thai Nguyen province. (ii) Personal characteristics (age, gender, education level, health), Attitude, Behavioral control perception, Ability to mobilize finance; Comments of surrounding people; Support from family and friends influencing Self-employment of rural youth in Thai Nguyen province. Factors that positively affects and marginal impact of factors on intention to create self-employment: Youth's attitude to self-employment (11.88%); Ability to mobilize personal finance (9.98%), Awareness of behavior control (5.82%); Opinions of people involved (13.98%); Gender (12.20%); Participate in political organizations (15.85%). Meanwhile, the factors that negatively affects the intention of self-employment: Age (11.15%); Health (8.98%); Region (8.83%); Educational attainment (12.26%). Factors influencing on self-employment decision: (i) Factors that positively affects: Youth attitude to self-employment (10.36%); Ability to mobilize personal finance (8.89%), Awareness of behavior control (5.02%); Opinions of people around (11.51%); Gender (14.65%); (ii) Factors having the opposite effect: Age (21.96%); Health (10.89%); Region (6.78%); Educational attainment (12.41%). Factors affecting the decision to maintain self-employment creation: (i) Factors that positively affects: Youth attitude to self-employment (25.45%); Ability to mobilize personal finance (12.54%), opinions of people around (20.54%); Gender (32.10%); (ii) Factors having the opposite effect: Age (23.87%); Region (15.2%); Educational attainment (30.34%). Based on the research results found, the thesis proposes 6 groups of measures to promote self-employment of rural youth in Thai Nguyen province. Main solutions: Promote the propaganda 5 the intentions, decisions on choosing self-created jobs, decisions to maintain self-employment of rural youth. Observations in the study are young people in rural areas in Thai Nguyen province, including those who are self-employed and not self-employed. 5. The thesis structure In addition to the introduction and conclusion, the thesis includes 5 chapters: Chapter 1: Literature review Chapter 2: Theoretical and practical basis Chapter 3: Research Methodology Chapter 4: Research Findings Chapter 5: Recommendation CHAPTER 1: LITERATURE REVIEW 1.1. Studies on employment, job creation 1.2. Studies of self-employment 1.2.1. Study the role of self-employment in the economy 1.2.2. Research on factors influencing self-employment 1.2.3. Synthesize the effects of factors on self-employment Factors affecting job creation in previous studies can be divided into 02 groups of factors: (i) Internal factors: Factors belonging to individual characteristics (Gender, Age, Education, Marital Status, Personal Health), Personal Financial Resources, Attitude to Risk). (ii) Group of factors of external environment (opinions of surrounding people, Mass organizations, Support from government policies). * Methods used in self-employment research The methods used are mainly: statistical description method, cross comparison (Nadia et al (2013), Suzana (2012), Blau (1987), by Muhammad (2011); method Probability regression with the dependent variable is the binary variable (Gilang Amarullah and Mohamad Fahmi (2018), M. Yasar Sattar (2019), Fatima & Yousaf (2015), Nikolova and Bargar (2010), Vanpraag (1995), Cahill (2013), Giandrea et al (2008), Kerr 6 and Armstrong Stassen (2011), Solinge (2012), IshaqueMahama and Motin Bashiru (2014), Budig (2006), Ho Thi Dieu Anh (2015), Phan Anh Tu and Giang Thi Cam Tien (2014).); Multivariate regression method (Dawson, Henley and Latreille (2009)) Thus, the majority of previous studies are used Probabilistic regression method for self-employment research, this is a quantitative research method for high reliability. 1.3. Researching gaps In the framework of the thesis, the graduate student intends to inherit quantitative research methods to estimate the factors affecting the probability of self-employment of rural youth in Thai Nguyen province, and a definitive regression model. The Probit yield is considered for use in the study. However, with the goal of self-employment creation research (choosing and deciding to maintain self-employment) on the basis of intent to create self-employment, the conventional Probit probability regression model is used. The decisions will only be studied in a discrete manner and provide estimates that are likely to be biased, so to overcome this shortcoming, the thesis uses the Bivariate conditional probability regression model Probit. CHAPTER 2. THEORETICAL AND PRACTICAL BASIS 2.1. The basics of rural youth 2.1.1. Concept of rural youth and youth Young people are “Young social labor force, belonging to a group of distinct stages in the life cycle between childhood and adulthood (15 to 30 years old in Vietnam). Being a specific social demographic group with rapid physical, psychological and intellectual development, participating in all areas of social life, is an important force in the development of Countries". Rural youth are a young workforce who are born, grow up, live and work (agricultural or non-agricultural) mainly in rural areas. Rural youth have some specific characteristics defined by regional characteristics. 2.1.2. Characteristics of rural youth and youth 23 5.1.1. Objectives and orientations to create jobs and self-create jobs in Thai Nguyen province 5.1.2. Research findings 5.2. Solutions to promote self-employment of rural youth in Thai Nguyen province are recommended Promoting propaganda about the entrepreneurship is the basis for forming awareness of self-employment and self-employment benefits. To create a mechanism for rural youth to easily access credit capital and financial sources to support self-employment Development of vocational training services, vocational skills and self- employment Improve the policy system, and improve the implementation of policies to support youth self-employment Promote the role of families in other close relationships to self-employment of rural youth CONCLUSION Based on secondary information, primary information is obtained, using descriptive statistical methods and regression analysis through two models: Probit probability regression and Bivariate conditional probability regression Probit with survey data, dissertation has: (i) Assessment of self-employment creation of rural youth in Thai Nguyen province. The current situation shows that the self-employment rate of rural youth in Thai Nguyen province is quite low, at approximately 6%. The vocational qualifications of rural youth in self-employment are mainly simple jobs (68.7 - 78.4%), low technical and professional qualifications are low (0.3%). Young people with high school education or higher only account for around 30%. The main reason why rural young people choose to create a job by themselves is because they cannot find a job, or want to get rid of the stuffiness and pressure of the workplace environment. What makes Thai Nguyen's rural young workers give up their self-employment is due to unprofitable business, financial difficulties or other employment opportunities. 22 4.5.4. Decision to maintain self-employment of rural youth in Thai Nguyen province In order to measure the impact of these groups of factors on the decision to maintain rural youth self-employment in Thai Nguyen province, the marginal effect at the mean values? Of these factors was considered and calculated. The results are shown in the Table below. Table 4. 5. The marginal impact of variables on the decision to maintain self-employment of rural youth in Thai Nguyen province Variables Marginal impact Standard deviation P > |z| TD 0,0965463*** 0,03237 0,003 TC 0,0400895 0,02888 0,165 NT 0,0173442 0,02868 0,545 YK 0,0852884** 0,03341 0,011 gioitinh 0,0921939** 0,0407 0,023 tuoi 0,1245543** 0,05768 0,031 hnhan -0,0838564** 0,03706 0,024 skhoe 0,0814482 0,06629 0,219 kvuc -0,0594683 0,04743 0,21 tcctri -0,0675027** 0,03311 0,042 hotro -0,0399928 0,08374 0,633 dtoc 0,0165847 0,06435 0,797 giaoduc 0,1073261 0,07873 0,173 observations 176 Pseudo R2 52,62 Note: *, **, and *** represent statistical significance at 10%, 5% and 1%. Source: Results of analyzing the author's survey data CHAPTER 5. RECOMENDATION 5.1. Recommended basis 7 2.2. The basics of self-employment 2.2.1. General theory of job creation 2.2.2 The intentions, decisions and decisions of maintaining youth self- employment Self-employment intentions Intention is the specific desire to do something on the basis of an awareness of opportunities, available resources, and the individual's beliefs about the action. The intention of self-employment of rural youth is the desire to create job creation activities by themselves, take responsibility for the created jobs, derived from the discovery of opportunities or contextual conditions actual impact, on the basis of consideration of resources and beliefs of the young person himself. In the framework of the research, the thesis research The intention of self-employment of rural youth in Thai Nguyen province in terms of the current practical context of Thai Nguyen province, with the available resources of the youth. Youth in rural areas of the province, whether young people intend to create jobs by themselves and what factors affect the intention of rural youth in Thai Nguyen to create self-employment. Decide to self-employment and decide to maintain self-employment Rural youth self-employment decision-making is the process and the outcome of the rural youth consciously working on self-employment on the basis of available intentions and consideration of resource conditions, the ability of young people to perform themselves to decide whether to implement self-employment activities. The decision to maintain self-employment here is understood as a decision to continue to do self-employment for a long time, put trust and have a serious attitude towards self-employment, without stopping between or give up halfway to switch to salaried jobs or other employment opportunities. 2.2.3. Several theories used in self-employment research Theory of social awareness Bandura 1986 8 The entrepreneurial event of Shapero and Sokol 1982 (The entrepreneurial event -SEE) Shapero (1984) business startup model Model of intentions Shapero - Krueger 2000 Reasonable action theory (TRA) Planning behavioral theory (TPB) 2.3. Basic theory studies the factors affecting self-employment It can be seen that the behavioral theories of Bandura (1986), Ajzen and Fishbein (1975), Ajzen (1991), Shapero (1984), Shapero and Krueger (2000) have certain similarities. First, the theories Ajzen and Fishbein (1975), Ajzen (1991), Shapero (1984), Shapero and Krueger (2000) all say that, before making a decision, individuals must think, must have an intention (intentions), has new intention to decide. A strong intention will always lead to the effort to start a new job. Thus, self-employment intentions are able to accurately predict future self-employment decisions. The main difference in the two theoretical lines is in how scales are measured. The theory of Ajzen and Fishbein (1975), Ajzen (1991), research factors are measured by the likert scale, while Shapero (1984), Shapero and Krueger (2000) use the binary scale to measure measure the research variables. Second, Ajzen (1991) said that behavior is the result of intention, but intention depends on three groups of factors: attitudes, opinions of surrounding people, perception of the ability to control behavior. Thus, in essence, these three groups of factors can be divided into two groups of factors: (i) personal factors (attitudes, feelings about the ability to control behavior), (ii) human groups external factors (opinions of people around). Thus, in terms of the group of impact factors, Ajzen (1991) has a similarity with Bandura (1986), and Ajzen (1991) different from Bandura (1986), which is the process leading to behavior: intent appears before the behavior decision is made. Third, Ajzen (1991) and Shapero & Krueger (2000), both explain behavior through intention, but there is a difference in the factors that influence intent and thereby behavior. Shapero and Krueger (2000) argue 21 rural youth in Thai Nguyen province is influenced by groups of factors: Personal characteristics (Age, gender, education level, health, region), Attitude, Perception of behavioral control, Ability to mobilize personal finance); Comments of surrounding people; Support from organizations and unions. 4.5.3. Self-employment decision of rural youth in Thai Nguyen province Table 4. 4. The marginal impact of variables on the decision to create self- employment by rural youth in Thai Nguyen province Variables Marginal impact Standard deviation P > |z| TD 0,0984222*** 0,03173 0,002 TC 0,0787797*** 0,02874 0,006 NT 0,0420518 0,0292 0,15 YK 0,1243587*** 0,03521 0,000 CS 0,1402978*** 0,04226 0,001 gioitinh 0,1558513*** 0,05931 0,009 tuoi -0,202992*** 0,04092 0,000 hnhan 0,0878404 0,06876 0,201 skhoe -0,0929082 0,05117 0,169 kvuc -0,0793559** 0,03417 0,02 tcctri 0,0302979 0,08311 0,715 hotro 0,0744237 0,0639 0,244 dtoc 0,0940683 0,08534 0,27 giaoduc -0,1502784** 0,05882 0,011 observations 218 P Seudo R2 54,611 Note: *, **, and *** represent statistical significance at 10%, 5% and 1%. Source: Results of analyzing the author's survey data The estimation results from the model, at the average value level, have shown the marginal effects of these factors on the decision to create self-employment of rural youth in Thai Nguyen province. 20 problems (57.14%); (iii) have a job association or other business (47.61%); (iv) incidents (weather, disease), personal reasons (family, health). The reason that rural youth continue to maintain self-employment activities. Thai Nguyen continues to maintain self-employment, for a number of owners' reasons: They need to recover their spent capital (85.27%); still doing well, profitable business (81.81%); the job is doing has good prospects (75%); enough to support themselves, comfortably and freely (70.45%); do not want to disappoint family and relatives (55%), other reasons (2.27%). Advantages and disadvantages with self-employment creation of rural youth in Thai Nguyen province In terms of advantages, rural youth receive support and active support from family and friends for self-employment. In addition to spiritual encouragement, family and friends, relatives also support youth to create jobs by themselves in mobilizing financial resources, reducing risks for young people if they have to mortgage assets to borrow bank capital. Another advantageous factor coming from young people is their self-confidence and positive attitude towards self-employment, as a psychological motivating factor, not afraid of risk of self-employment. The difficulty is that the supporting policies are not really easy to access, not ineffective. In addition, the support from mass organizations and youth self-employment is weak, failing to demonstrate the role of connecting young people to state policies. Another difficulty of young people in the process of self-employment is also shown that lack of knowledge and inexperience are the reasons that make them vulnerable to failure, and then they can give up creating jobs, even though they have lost a lot of effort and finance to get started. 4.5. The research results on factors affecting the decision to create self- employment of rural youth in Thai Nguyen province 4.5.1. Factor analysis results (EFA) 4.5.2. Self-employment intentions of rural youth in Thai Nguyen province The thesis estimates the impact of groups of factors on the intention of self-employment of rural youth in Thai Nguyen province. The estimation results found from the model show that the intention of self-employment of 9 that intention is influenced by three groups of factors: Perception of desire to create self-employment, a tendency to act, a sense of feasibility, of which a sense of feasibility is also similar to behavioral control in the model of Ajzen (1991). However, it is easy to see that all three groups of factors are individual factors. Overall, it can be seen that the opinions of the three authors about factors affecting behavior are different but also have certain common points. The impact factors that Ajzen (1991) and Bandura (1986) belong to the group of factors belonging to the individual (inside) and the group of environmental factors (outside). While Ajzen (1991) and Shapero and Krueger (2000) shared the same view, there must be an intention to act before there is action. Thus, in terms of the decision-making process, Ajzen's theory (1991) is more complete when explaining the process that leads to the behavior having to undergo intent (intent) and groups of factors. including both internal factors and external factors (environmental factors). However, to further test other factors that can affect the intention to self-create jobs, thereby influencing the decision to self-create and the decision to maintain self-employment, the likert scale for “Italy and "Behavior" according to Ajzen theory reveal many limitations. Therefore, the dissertation combines the theoretical model of Ajzen (1991), and selectively inherits from Shapero's theory (1984, 2000) on the scale of intent (intention) and behavior to model. The research is more extensive and consistent with the research objectives of the thesis. 2.4. Research framework Based on the theory of planned behavior of Ajzen (1991), the theory of intentions of Shapero - Krueger (2000), inherits the results of the studies that have been reviewed on the impact of factors on To create jobs, the thesis builds a research framework as follows: 10 Figure 2. 7. Factors influencing self-employment of rural youth in Thai Nguyen province (i) The group of internal factors includes characteristics of the individual rural youth (age, gender, education level, health, marital status), the youth's ability to mobilize personal finance, awareness about your ability to control your behavior. (ii) Group of external factors: opinions of relatives around (friends, family ...), support from mass organizations, support from government policies. 2.5. Practical basis for youth self-employment CHAPTER 3. METHODOLOGY 3.1. Research process 3.2. Research question Personal characteristics: Age, sex, education level, health, marital status attitude Awareness of behavior control Ability to mobilize talent Comments of people around Support from organizations and Support from State policies The intentions The decisions The decisions Of maintaining 19 4.3.6. Support self-employment of organizations and unions to decide on self-employment 50.43% of young people in the group deciding to create a job receive support and 49.57% who do not receive support is the result of the survey. A higher proportion of support recipients was found in the group without self-employment (60.71%). Support for the self-employment decision-making group has not really been of interest. 4.3.7. State support policy with self-employment decision Survey results show that there is a difference in opinion between two groups of young people who decide to create jobs by themselves and young people who do not decide to create jobs by themselves. With the youth group deciding to create jobs by themselves, those who directly contact the policy, and benefit from the policy, stated that: the support policy for self-employment is not really reasonable (3.255 points). The group also did not really agree with the statements such as, state policy is accessible, complete and effective. 4.4. General assessment on self-employment of rural youth in Thai Nguyen province General assessment From the results of the self-employment situation of Thai Nguyen province, it shows that the youth labor force for self-employment is quite low, the self-employment rate of young people in Thai Nguyen province is only approximately 6%. The reason for choosing self-created jobs. Survey results show that there are many reasons why young people choose to create jobs by themselves, mainly because they cannot find jobs (64.67%), forcing them to create jobs by themselves, the big reason. The second is due to their own essential needs (63.67%), the third biggest reason is because of wanting to get rid of the stuffiness, the pressure of the workplace (55.04%) ... so they choose to create jobs by themselves. Cause for giving up self-employment. Quitting self-employment has happened in the rural youth division of Thai Nguyen province. Through the survey, some young reasons for giving up self-employment were found: (i) unprofitable production and business activities (71.42%); (ii) having financial 18 4.3.3. Awareness of behavior control with self-employment decision Personal awareness can create jobs and succeed when self- employment makes themselves receive a high level of consent, in the group that decides to create jobs by themselves are 4.16 and 4.26 points, the group does not self-employment creation at 4,188 to 4,238 respectively for the two above statements. In these two observations, there is no statistically significant difference between the two surveyed youth groups. In the perception that the self-employment process can be controlled, the group participating in self-employment has a higher level of consent of 0.188 points compared to the other group with the statistical significance of 90%. However, the score of 3.89 shows that the group deciding to create jobs is not really confident in their own control in the process of self-employment. 4.3.4. Ability to mobilize personal finance with self-employment decision The ability to mobilize personal finance in the youth group who decided to create jobs by themselves was greater than the ability to mobilize personal finance in the group who decided not to create jobs by themselves. The difference in comments ranged from 0.226 to 0.428 points and was statistically significant. The biggest difference is in the ability to accumulate capital from savings or overtime, and the smallest difference in the ability to mortgage assets to create self-employment. 4.3.5. The opinion of the surrounding people with the decision to create a job by yourself Young people 'decision to self-create jobs received support from their neighbors with good scores, 4,059 for self-employment groups and 3,922 for those with no self-employment. However, support from family and friends for self-employment are not really positive with a score of approximately 3.7 for self-employment and lower at 3,377 to 3,616 in the non-self-employment group do. Thus, it can be seen that when deciding to create self-employment, rural youth in Thai Nguyen province determines that it must rely mainly on the ability and efforts of that individual youth. 11 (i) What is the status of self-employment in rural Thai Nguyen province? What are factors affecting rural youth self-employment in Thai Nguyen province? (ii) What factors affect the intention / decision to choose / decide to maintain self-employment of rural youth in Thai Nguyen province? How is the impact of each factor on the intention / decision to elect / decide to remain self-employed? (iii) What solutions to promote rural youth in Thai Nguyen province to choose and maintain self-employment. 3.3. Methods of data collection and analysis 3.3.1. Data collection methods 3.3.1.1. Secondary data source 3.3.1.2. Methods of collecting primary information 3.3.2. Data analysis method Descriptive statistics method Method of comparison and comparison Statistical classification method Methods of synthesis and analysis Group comparison analysis Discovery factor analysis method Regression analysis method The research on self-employment of rural youth is divided into 3 phases: State 1: Rural youth have the intention to create jobs by themselves. State 2: From the intention of self-employment to the choice of whether to self-create jobs of rural youth. State 3: