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Heterogeneous self-employment and satisfaction in Latin America

  • Aguilar, Alexandra Cortés
  • García Muñoz, Teresa M.
  • Moro-Egido, Ana I.

This paper analyzes the relationship between labor status and individual satisfaction in Latin America. Existing evidence for developed countries shows that the self-employed report higher job satisfaction than the employed. The evidence, however, is less conclusive in terms of life-satisfaction. Moreover, for Latin American countries, the evidence shows that self-employed individuals report lower life-satisfaction than employed individuals do. To clarify the effect of self-employment on satisfaction, we use the Latinobarómetro survey 2007 for eighteen Latin American and Caribbean countries, considering the category self-employment as a heterogeneous category. Additionally, we control for the distinction between necessity and opportunity self-employed. Contrary to existing evidence, we find that not all self-employed individuals are more satisfied than employed individuals. Specifically, we find evidence revealing that, compared to workers in paid employment: (i) self-employed professionals are more satisfied than the employed only with their incomes; (ii) business owners are more satisfied with their lives, income and job; (iii) self-employed famers and fisherman are less satisfied with their jobs and income; and (iv) precarious self-employed workers are as satisfied as the employed with their life but less with job, and for household income results are not conclusive.

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Article provided by Elsevier in its journal Journal of Economic Psychology.

Volume (Year): 39 (2013)
Issue (Month): C ()
Pages: 44-61

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Handle: RePEc:eee:joepsy:v:39:y:2013:i:c:p:44-61
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