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The struggle is real: self-employment and short-term psychological distress

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  • Reid, Shane W.
  • Patel, Pankaj C.
  • Wolfe, Marcus T.

Abstract

We test whether self-employed individuals report more short-term psychological distress compared to paid employees. The ability to pursue their entrepreneurial dreams could lead self-employed individuals to experience feelings of positive emotion, autonomy, and confidence that can lower short-term psychological distress. Yet, the significant demands of self-employment undertakings might also induce feelings of negative emotions, helplessness, and lack of control typically associated with increased short-term psychological distress. We investigate the relationship between self-employment and self-reported, short-term psychological distress using a sample of 171,883 respondents from the 1997–2015 cross-sectional surveys of the National Health Interview Survey (NHIS). Results indicate that self-employment has a positive association with psychological distress. Findings are robust to matched-pair sampling and alternate measures of levels of psychological distress.

Suggested Citation

  • Reid, Shane W. & Patel, Pankaj C. & Wolfe, Marcus T., 2018. "The struggle is real: self-employment and short-term psychological distress," Journal of Business Venturing Insights, Elsevier, vol. 9(C), pages 128-136.
    • Handle: RePEc:eee:jobuve:v:9:y:2018:i:c:p:128-136
    DOI: 10.1016/j.jbvi.2018.04.002
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    Cited by:

    1. Marcus T. Wolfe & Pankaj C. Patel, 0. "I will sleep when I am dead? Sleep and self-employment," Small Business Economics, Springer, vol. 0, pages 1-17.
    2. Boris N. Nikolaev & Michael P. Lerman & Christopher J. Boudreaux & Brandon A. Mueller, 2023. "Self-Employment and Eudaimonic Well-Being: The Mediating Role of Problem- and Emotion-Focused Coping," Entrepreneurship Theory and Practice, , vol. 47(6), pages 2121-2154, November.
    3. Marcus T. Wolfe & Pankaj C. Patel, 2020. "I will sleep when I am dead? Sleep and self-employment," Small Business Economics, Springer, vol. 55(4), pages 901-917, December.
    4. Patel, Pankaj C. & Rietveld, Cornelius A., 2020. "The impact of financial insecurity on the self-employed’s short-term psychological distress: Evidence from the COVID-19 pandemic," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    5. Wolfe, Marcus T. & Patel, Pankaj C., 2021. "Everybody hurts: Self-employment, financial concerns, mental distress, and well-being during COVID-19," Journal of Business Venturing Insights, Elsevier, vol. 15(C).

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