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Does the accumulation of self-employment experience impact life satisfaction?

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  • Litsardopoulos, Nicholas
  • Saridakis, George
  • Hand, Chris

Abstract

This paper investigates the association of life satisfaction and self-employment experience. Using a large longitudinal dataset from the Understanding Society survey over the period 2009–2019, the paper examines how the allocation of time to wage- or self-employment affects individual life satisfaction. We argue that the typical dichotomous wage-employee/self-employed variable does not fully explain the association over time. Instead, when we measure self-employment experience over time, we identify significant variations. We examine the effects of self-employment experience on overall satisfaction and on a composite life satisfaction metric which combines the satisfaction with job, income, leisure, and health. We find that overall self-employment experience exhibits a positive effect on life satisfaction. However, we identify contrasting effects between the two life-satisfaction metrics in men and women. The results suggest the existence of effects above and beyond work related factors, which affect men and women differently.

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  • Litsardopoulos, Nicholas & Saridakis, George & Hand, Chris, 2021. "Does the accumulation of self-employment experience impact life satisfaction?," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    • Handle: RePEc:eee:jobuve:v:16:y:2021:i:c:s2352673421000378
    DOI: 10.1016/j.jbvi.2021.e00259
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    1. Ardianti, Retno & Obschonka, Martin & Davidsson, Per, 2022. "Psychological well-being of hybrid entrepreneurs," Journal of Business Venturing Insights, Elsevier, vol. 17(C).

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    More about this item

    Keywords

    Self-employment; Gender; Life satisfaction; Occupational choice;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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