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Types of institutions and well-being of self-employed and paid employees in Europe

Author

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  • Michael Fritsch

    (Friedrich Schiller University Jena
    Halle Institute for Economic Research (IWH))

  • Alina Sorgner

    (John Cabot University
    Kiel Institute for the World Economy (IfW Kiel)
    Institute of Labor Economics (IZA Bonn))

  • Michael Wyrwich

    (University of Groningen)

Abstract

This paper analyzes the role of different types of institutions, such as entrepreneurship-facilitating entry conditions, labor market regulations, quality of government, and perception of corruption for individual well-being among self-employed and paid employed individuals. Well-being is operationalized by job and life satisfaction of individuals in 32 European countries measured by data from EU Statistics on Income and Living Conditions (EU-SILC). We find that institutions never affected both occupational groups in opposite ways. Our findings indicate that labor market institutions do not play an important role for well-being. The results suggest that fostering an entrepreneurial society in Europe is a welfare-enhancing strategy that benefits both, the self-employed and paid employees.

Suggested Citation

  • Michael Fritsch & Alina Sorgner & Michael Wyrwich, 2021. "Types of institutions and well-being of self-employed and paid employees in Europe," Small Business Economics, Springer, vol. 56(2), pages 877-901, February.
    • Handle: RePEc:kap:sbusec:v:56:y:2021:i:2:d:10.1007_s11187-019-00274-2
    DOI: 10.1007/s11187-019-00274-2
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    Cited by:

    1. Charlie Karlsson & Jonna Rickardsson & Joakim Wincent, 2021. "Diversity, innovation and entrepreneurship: where are we and where should we go in future studies?," Small Business Economics, Springer, vol. 56(2), pages 759-772, February.
    2. Binder, Martin & Blankenberg, Ann-Kathrin, 2021. "Self-employment and subjective well-being," University of Göttingen Working Papers in Economics 411, University of Goettingen, Department of Economics.
    3. Audretsch, David B. & Belitski, Maksim & Chowdhury, Farzana & Desai, Sameeksha, 2024. "Regulating entrepreneurship quality and quantity," Research Policy, Elsevier, vol. 53(2).
    4. Xiaoyu Yu & Xiaotong Meng & Laura Stanley & Franz W. Kellermanns, 2024. "Self-employment and life satisfaction: The contingent role of formal institutions," Small Business Economics, Springer, vol. 63(1), pages 135-163, June.

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    More about this item

    Keywords

    Entrepreneurship; Institutions; Subjective well-being; Life satisfaction; Job satisfaction;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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