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Money might not make you happy, but can happiness make you money? The value of leveraging subjective well-being to enhance financial well-being in self-employment

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  • Patel, Pankaj C.
  • Wolfe, Marcus T.

Abstract

In recent years there has been a growing interest in understanding the relationship between subjective well-being and self-employment. Extending this body of work, we ask whether subjective well-being is associated with financial well-being for self-employed individuals, and whether those with financial skills are better able to leverage subjective well-being to realize higher financial well-being. Using a sample of 332 self-employed individuals in the Consumer Financial Protection Bureau's (CFPB's) National Financial Well-Being Survey, we find that there is a positive association between subjective well-being and financial well-being, and this association is strengthened among those with higher financial skills. These findings highlight the need for assessing the association between different types of well-being from self-employment.

Suggested Citation

  • Patel, Pankaj C. & Wolfe, Marcus T., 2019. "Money might not make you happy, but can happiness make you money? The value of leveraging subjective well-being to enhance financial well-being in self-employment," Journal of Business Venturing Insights, Elsevier, vol. 12(C).
    • Handle: RePEc:eee:jobuve:v:12:y:2019:i:c:s235267341930037x
    DOI: 10.1016/j.jbvi.2019.e00134
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    1. Donald J. Lacombe & Nasima Khatun, 2023. "What are the determinants of financial well‐being? A Bayesian LASSO approach," American Journal of Economics and Sociology, Wiley Blackwell, vol. 82(1), pages 43-59, January.

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