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Self-employment and mental health

Author

Listed:
  • Vicki L. Bogan

    (Cornell University)

  • Angela R. Fertig

    (University of Minnesota)

  • David R. Just

    (Cornell University)

Abstract

This paper analyzes the role of mental health in self-employment decisions. We find evidence of a relationship between psychological distress and self-employment for men that depends on type of self-employment and severity of psychological distress. Specifically, there is suggestive evidence of a causal link from moderate psychological distress to self-employment in an unincorporated business as a main job for men. Additionally, we find evidence that long term mental illness can significantly increase the probability of self-employment in an unincorporated business for both men and women. Our results suggest that individual difficulty in wage-and-salary employment is the likely mechanism for this connection.

Suggested Citation

  • Vicki L. Bogan & Angela R. Fertig & David R. Just, 2022. "Self-employment and mental health," Review of Economics of the Household, Springer, vol. 20(3), pages 855-886, September.
    • Handle: RePEc:kap:reveho:v:20:y:2022:i:3:d:10.1007_s11150-021-09578-3
    DOI: 10.1007/s11150-021-09578-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Entrepreneurship; Self-employment; Occupational choice; Mental health;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • I10 - Health, Education, and Welfare - - Health - - - General

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