The Role of Job Satisfaction in Transitions into Self-Employment
AbstractAs observed in many advanced economies experiencing an increase of self-employment rates since the late 1970s, a flourishing small- and medium-size enterprise sector is traditionally associated with positive economic development and growth. In the regional context, areas benefiting from an established entrepreneurial culture are in general more successful and innovative, as well as better equipped to sustain structural changes and to contrast unemployment. It is therefore important to investigate the reasons why individuals choose self-employment, and why they do it despite lower protection, higher risks, and possibly more effort than what is offered in a comparable wage employment position. Existing research identifies better prospects of entrepreneurial earnings as compared to wages as a major attraction towards self-employment. However, beside pecuniary motivations, other factors may be considered when it comes to occupational choice, as, among others, displacement, uncertainty, (the threat of) unemployment, and (dis-)satisfaction. Building on a job quits model, we propose a representation of transition behaviour from wage to self-employment which includes subjective evaluations of pecuniary and nonpecuniary satisfaction on the previous job. Individual microdata are drawn from the Swiss Household Panel (SHP), and cover the time period 1999–2008. Additionally, we focus on the dynamics of job satisfaction in order to highlight the role played by shocks in subjective evaluations, and introduce their interaction with levels to control for threshold effects.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by USI Università della Svizzera italiana in its series Quaderni della facoltà di Scienze economiche dell'Università di Lugano with number 1201.
Length: 16 pages
Date of creation: Nov 2011
Date of revision:
Contact details of provider:
Web page: https://www.bul.sbu.usi.ch
self-employment; job satisfaction; job transition; Switzerland;
Other versions of this item:
- G. Guerra & R. Patuelli, 2012. "The Role of Job Satisfaction in Transitions into Self-Employment," Working Papers wp849, Dipartimento Scienze Economiche, Universita' di Bologna.
- Giuliano Guerra & Roberto Patuelli, 2012. "The Role of Job Satisfaction in Transitions into Self-Employment," Working Paper Series 63_12, The Rimini Centre for Economic Analysis, revised Jul 2014.
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-05 (All new papers)
- NEP-BEC-2011-12-05 (Business Economics)
- NEP-ENT-2011-12-05 (Entrepreneurship)
- NEP-HAP-2011-12-05 (Economics of Happiness)
- NEP-HRM-2011-12-05 (Human Capital & Human Resource Management)
- NEP-LAB-2011-12-05 (Labour Economics)
- NEP-LMA-2011-12-05 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2011-12-05 (Unemployment, Inequality & Poverty)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Black, Jane & de Meza, David & Jeffreys, David, 1996. "House Price, the Supply of Collateral and the Enterprise Economy," Economic Journal, Royal Economic Society, vol. 106(434), pages 60-75, January.
- Kihlstrom, Richard E & Laffont, Jean-Jacques, 1979. "A General Equilibrium Entrepreneurial Theory of Firm Formation Based on Risk Aversion," Journal of Political Economy, University of Chicago Press, vol. 87(4), pages 719-48, August.
- Gottschalk, Peter & Maloney, Tim, 1985. "Involuntary Terminations, Unemployment, and Job Matching: A Test of Job Search Theory," Journal of Labor Economics, University of Chicago Press, vol. 3(2), pages 109-23, April.
- 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.
- 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.
- repec:hal:journl:halshs-00203158 is not listed on IDEAS
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
- Balli, Hatice Ozer & Sorensen, Bent E., 2012.
"Interaction effects in econometrics,"
38608, University Library of Munich, Germany.
- Goetz, Stephan J. & Fleming, David A. & Rupasingha, Anil, 2012. "The Economic Impacts of Self-Employment," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(03), August.
- Clark, Andrew E. & Oswald, Andrew J., 1994.
"Satisfaction and comparison income,"
CEPREMAP Working Papers (Couverture Orange)
- Ariel Pakes & Richard Ericson, 1989.
"Empirical Implications of Alternative Models of Firm Dynamics,"
NBER Working Papers
2893, National Bureau of Economic Research, Inc.
- Pakes, Ariel & Ericson, Richard, 1998. "Empirical Implications of Alternative Models of Firm Dynamics," Journal of Economic Theory, Elsevier, vol. 79(1), pages 1-45, March.
- Pakes, A. & Ericson, R., 1990. "Empirical Implications Of Alternative Models Of Firm Dynamics," Papers 594, Yale - Economic Growth Center.
- Blanchflower, David G & Oswald, Andrew J, 1998.
"What Makes an Entrepreneur?,"
Journal of Labor Economics,
University of Chicago Press, vol. 16(1), pages 26-60, January.
- Andrew Clark & Yannis Georgellis & Peter Sanfey, 1997.
"Job Satisfaction, Wage Changes and Quits: Evidence from Germany,"
Studies in Economics
9711, Department of Economics, University of Kent.
- Andrew Clark & Yannis Georgellis & Peter Sanfey, . "Job Satisfaction, Wage changes and Quits: Evidence from Germany," Economics and Finance Discussion Papers 98-06, Economics and Finance Section, School of Social Sciences, Brunel University.
- Zoltan J. Acs & Catherine Armington, 2004.
"Employment Growth and Entrepreneurial Activity in Cities,"
Papers on Entrepreneurship, Growth and Public Policy
2004-13, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Zoltan Acs & Catherine Armington, 2004. "Employment Growth and Entrepreneurial Activity in Cities," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 911-927.
- Sander Wennekers & Andre van Stel & Niels Noorderhaven & Roy Thurik, 2004.
"The Role Of Dissatisfaction And Per Capita Income In Explaining Self-Employment Across 15 European Countries,"
Papers on Entrepreneurship, Growth and Public Policy
2004-11, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- André van Stel & Roy Thurik & Sander Wennekers & Niels Noorderhaven, 2004. "The role of dissatisfaction and per capita income in explaining self-employment across 15 European countries," Scales Research Reports N200407, EIM Business and Policy Research.
- Lindh, Thomas & Ohlsson, Henry, 1996. "Self-Employment and Windfall Gains: Evidence from the Swedish Lottery," Economic Journal, Royal Economic Society, vol. 106(439), pages 1515-26, November.
- Giuliano Guerra & Roberto Patuelli & Rico Maggi, 2010.
"Ethnic Concentration, Cultural Identity and Immigrant Self-Employment in Switzerland,"
Quaderni della facoltÃ di Scienze economiche dell'UniversitÃ di Lugano
1008, USI Università della Svizzera italiana.
- G. Guerra & R. Patuelli & R. Maggi, 2012. "Ethnic Concentration, Cultural Identity and Immigrant Self-Employment in Switzerland," Working Papers wp808, Dipartimento Scienze Economiche, Universita' di Bologna.
- Giuliano Guerra & Roberto Patuelli & Rico Maggi, 2010. "Ethnic Concentration, Cultural Identity and Immigrant Self-Employment in Switzerland," Working Paper Series 11_10, The Rimini Centre for Economic Analysis, revised Aug 2011.
- David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc.
- Fujii, Edwin T. & Hawley, Clifford B., 1991. "Empirical aspects of self-employment," Economics Letters, Elsevier, vol. 36(3), pages 323-329, July.
- Wildeman, R.E. & Hofstede, G. & Noorderhaven, N.G. & Thurik, A.R., 1998. "Culture's Role in Entrepreneurship; Self-employment out of Dissatisfaction," Open Access publications from Tilburg University urn:nbn:nl:ui:12-76587, Tilburg University.
- Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-58, December.
- David G. Blanchflower & Richard Freeman, 1997. "The attitudinal legacy of Communist labor relations," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(3), pages 438-459, April.
- 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.
- Taylor, Mark P., 1994. "Earnings, independence or unemployment: why become self -employed?," ISER Working Paper Series 26, Institute for Social and Economic Research.
- Rees, Hedley & Shah, Anup, 1986. "An Empirical Analysis of Self-employment in the U.K," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 95-108, January.
- 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.
- Andrew Henley, 2005. "Job Creation by the Self-employed: The Roles of Entrepreneurial and Financial Capital," Small Business Economics, Springer, vol. 25(2), pages 175-196, 09.
- Evans, David S, 1987. "The Relationship between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 567-81, June.
- Blanchflower, David G., 2000.
"Self-employment in OECD countries,"
Elsevier, vol. 7(5), pages 471-505, September.
- repec:hal:cesptp:halshs-00203158 is not listed on IDEAS
- Evans, David S, 1987. "Tests of Alternative Theories of Firm Growth," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 657-74, August.
- Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June.
- Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
- Edwin T. Fujii & Clifford H. Lee, 1991. "Empirical Aspects of Self-Employment," Working Papers 199103, University of Hawaii at Manoa, Department of Economics.
- Freeman, Richard B, 1978.
"Job Satisfaction as an Economic Variable,"
American Economic Review,
American Economic Association, vol. 68(2), pages 135-41, May.
- George A. Akerlof & Andrew K. Rose & Janet L. Yellen, 1988. "Job Switching and Job Satisfaction in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 495-594.
- Levy-Garboua, Louis & Montmarquette, Claude & Simonnet, Veronique, 2007.
"Job satisfaction and quits,"
Elsevier, vol. 14(2), pages 251-268, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alessio Tutino).
If references are entirely missing, you can add them using this form.