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Self-employment and subjective well-being

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  • Binder, Martin
  • Blankenberg, Ann-Kathrin

Abstract

Self-employment contributes to employment growth and innovativeness and many individuals want to become self-employed due to the autonomy and exibility it brings. Using "subjective well-being" as a broad summary measure that evaluates an individual's experience of being self-employed, the chapter discusses evidence and explanations why self-employment is positively associated with job satisfaction, even though the self-employed often earn less than their employed peers, work longer hours and experience more stress and higher job demands. Despite being more satisfied with their jobs, the self-employed do not necessarily enjoy higher overall life satisfaction, which is due to heterogeneity of types of self-employment, as well as motivational factors, work characteristics and institutional setups across countries.

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:cegedp:411
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    2. Milena Nikolova & Boris Nikolaev & Christopher Boudreaux, 2023. "Being your own boss and bossing others: the moderating effect of managing others on work meaning and autonomy for the self-employed and employees," Small Business Economics, Springer, vol. 60(2), pages 463-483, February.
    3. Mikael Nordenmark & Bodil J. Landstad & Åsa Tjulin & Stig Vinberg, 2023. "Life Satisfaction among Self-Employed People in Different Welfare Regimes during the COVID-19 Pandemic: Significance of Household Finances and Concerns about Work," IJERPH, MDPI, vol. 20(6), pages 1-13, March.
    4. Patel, Pankaj C. & Tsionas, Mike G. & Oghazi, Pejvak, 2023. "Compensating income variation in health and subjective well-being for the self-employed," Journal of Business Research, Elsevier, vol. 160(C).
    5. Medard Kofi Adu & Lauren J. Wallace & Kwabena F. Lartey & Joshua Arthur & Kenneth Fosu Oteng & Samuel Dwomoh & Ruth Owusu-Antwi & Rita Larsen-Reindorf & Vincent I. O. Agyapong, 2021. "Prevalence and Correlates of Likely Major Depressive Disorder among the Adult Population in Ghana during the COVID-19 Pandemic," IJERPH, MDPI, vol. 18(13), pages 1-19, July.
    6. Suppa, Nicolai, 2021. "Unemployment and subjective well-being," GLO Discussion Paper Series 760, Global Labor Organization (GLO).

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    15. 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).
    16. van der Zwan, Peter & Hessels, Jolanda & Rietveld, Cornelius A., 2018. "Self-employment and satisfaction with life, work, and leisure," Journal of Economic Psychology, Elsevier, vol. 64(C), pages 73-88.
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    More about this item

    Keywords

    self-employment; entrepreneurship; subjective well-being; job satisfaction; lifesatisfaction;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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