Abstract:
This study uses multinomial logit model to estimate the impact of significant factors
influencing occupational choices among the undergraduates in Sri Lanka. For this purpose, 123
Bachelor of Business Management undergraduates from third and fourth years of the Vavuniya
Campus of the University of Jaffna were selected. The primary data were collected through the
structured questionnaires and this study predominantly employed multinomial logistic
regression model and marginal effects to arrive the findings. Since the discrete choices have
more than two categories in the dependent variable, multinomial logit model is more
appropriate than other logit or probit models. Job choice was considered as an outcome variable
which has six categories whereas salaries, other benefits, working environment, job security,
career development and employer reputation were utilized as predictors in the study. Empirical
results of the model indicate that all the above variables are important factors that determine
the job choices, but their magnitude and significant levels vary across different types of job
choices. Salary was considered as an important factor in all job categories except in choice of
own business. The respondents who prefer to start their own businesses were more concerned
on other benefits while the respondents who prefer to become as an accountant more concerned
on career development than other job choices. The major findings of the study may assist the
students of Vavuniya Campus in selecting their specialization preferences on the subjects and
the academics to improve their curriculum design in the future.
