The Cultural Drivers of Self-Employment in MENA: Exploring the Roles of Internal Locus of Control and Religiosity

Abstract

What drives individuals in the Middle East and North Africa (MENA) region to pursue self-employment: internal or external personal attributes? How do these factors vary across different countries and economic contexts? This blog presents evidence from a two-level logistic estimation encompassing 12 countries from the MENA region and using data from waves six and seven of the World Values Survey (WVS).[1]

Cultural and psychological factors like Internal Locus of Control (ILC) and religiosity influence the decision to pursue self-employment. ILC, which reflects a belief in personal control over outcomes, encourages risk-taking and entrepreneurship. In contrast, religiosity connects outcomes to divine will, affecting risk-taking differently. Our research shows that while ILC consistently supports self-employment across the MENA region, religiosity’s effects vary based on a country’s economic context and social dynamics, at times enhancing or restricting self-employment.