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Never the same after the first time: the satisfaction of the second-generation self-employed

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Author Info
Andrew Clark
Nathalie Colombier
David Masclet

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Abstract

Purpose – It is known that the self-employed are generally more satisfied than salaried workers. The aim of this paper is to test whether this phenomenon is particularly found for the first-generation self-employed. Design/methodology/approach – French and British panel data are analysed, which include information on various measures of job satisfaction, and the respondent's parents' occupation. Job satisfaction regressions were run in which the first- and second-generation self-employed were distinguished between. Findings – The study finds that first-generation self-employed (those whose parents were not self-employed) are more satisfied overall than are the second-generation self-employed. The findings are consistent between the British and French data. Research limitations/implications – While the results are the same in the two countries considered, further validation work should extend the analysis across countries. While the authors are fairly sure that the second-generation self-employed do worse, they cannot precisely distinguish between comparison to one's parents, constrained occupational choice, and selection effects due to lower barriers to self-employment entry. Originality/value – The authors believe that this is one of the first papers to distinguish between types of self-employed in terms of their higher satisfaction. The finding that parents' labour force status continues to have a significant impact on their children's job satisfaction argues for a more systematic consideration of intergenerational factors in the analysis of labour markets.

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Publisher Info
Article provided by Emerald Group Publishing in its journal International Journal of Manpower.

Volume (Year): 29 (2008)
Issue (Month): 7 (November)
Pages: 591-609
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Handle: RePEc:eme:ijmpps:v:29:y:2008:i:7:p:591-609

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Related research
Keywords: Age groups; France; Job satisfaction; Parents; Self-employed workers; United Kingdom;

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References listed on IDEAS
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  1. Taylor, Mark P, 1996. "Earnings, Independence or Unemployment: Why Become Self-Employed?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(2), pages 253-66, May.
  2. Clark, Andrew E. & Senik, Claudia, 2006. "The (unexpected) structure of "rents" on the French and British labour markets," The Journal of Socio-Economics, Elsevier, vol. 35(2), pages 180-196, April. [Downloadable!] (restricted)
    Other versions:
  3. Bernard F. Lentz & David N. Laband, 1990. "Entrepreneurial Success and Occupational Inheritance among Proprietors," Canadian Journal of Economics, Canadian Economics Association, vol. 23(3), pages 563-79, August. [Downloadable!] (restricted)
  4. Blanchflower, David G. & Oswald, Andrew & Stutzer, Alois, 2001. "Latent entrepreneurship across nations," European Economic Review, Elsevier, vol. 45(4-6), pages 680-691, May. [Downloadable!] (restricted)
  5. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
    Other versions:
  6. Clark, Andrew E. & Oswald, Andrew J. & Warr, Peter B., 1994. "Is job satisfaction u-shaped in age ?," CEPREMAP Working Papers (Couverture Orange) 9407, CEPREMAP.
  7. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
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  8. Lindh, Thomas & Ohlsson, Henry, 1998. "Self-Employment and Wealth Inequality," Review of Income and Wealth, Blackwell Publishing, vol. 44(1), pages 25-42, March.
  9. Stefan Boes & Kevin Staub & Rainer Winkelmann, 2007. "Hedonic Adaptation to Living Standards and the Hidden Cost of Parental Income," Working Papers 0713, University of Zurich, Socioeconomic Institute. [Downloadable!]
  10. Nathalie Colombier & David Masclet, 2006. "Self-Employment and The Intergenerational Transmission of Human Capital," CIRANO Working Papers 2006s-19, CIRANO. [Downloadable!]
  11. McBride, Michael, 2001. "Relative-income effects on subjective well-being in the cross-section," Journal of Economic Behavior & Organization, Elsevier, vol. 45(3), pages 251-278, July. [Downloadable!] (restricted)
  12. Sousa-Poza, Alfonso & Sousa-Poza, Andres A, 2000. "Taking Another Look at the Gender/Job-Satisfaction Paradox," Kyklos, Blackwell Publishing, vol. 53(2), pages 135-52.
  13. Clark, Andrew E., 1997. "Job satisfaction and gender: Why are women so happy at work?," Labour Economics, Elsevier, vol. 4(4), pages 341-372, December. [Downloadable!] (restricted)
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  14. Kaufmann, Patrick J., 1999. "Franchising and the choice of self-employment," Journal of Business Venturing, Elsevier, vol. 14(4), pages 345-362, July. [Downloadable!] (restricted)
  15. Lazear, Edward P & Moore, Robert L, 1984. "Incentives, Productivity, and Labor Contracts," The Quarterly Journal of Economics, MIT Press, vol. 99(2), pages 275-96, May. [Downloadable!] (restricted)
  16. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-27, August. [Downloadable!] (restricted)
  17. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May. [Downloadable!] (restricted)
  18. Blanchflower, D.G. & Oswald, A., 1991. "What Makes an Entrepreneur?," Economics Series Working Papers 99125, University of Oxford, Department of Economics.
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  19. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June. [Downloadable!] (restricted)
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