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Heterogeneous self-employment and satisfaction in Latin America

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

Abstract

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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  • Aguilar, Alexandra Cortés & García Muñoz, Teresa M. & Moro-Egido, Ana I., 2013. "Heterogeneous self-employment and satisfaction in Latin America," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 44-61.
  • Handle: RePEc:eee:joepsy:v:39:y:2013:i:c:p:44-61
    DOI: 10.1016/j.joep.2013.07.001
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    Cited by:

    1. Milena Nikolova & Carol Graham, 2014. "Employment, late-life work, retirement, and well-being in Europe and the United States," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-30, December.
    2. Clemens Hetschko, 2016. "On the misery of losing self-employment," Small Business Economics, Springer, vol. 47(2), pages 461-478, August.
    3. repec:eee:joepsy:v:64:y:2018:i:c:p:73-88 is not listed on IDEAS
    4. Feng Hu, 2014. "Risk Attitudes and Self-employment in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 22(3), pages 101-120, July.
    5. Shannon Davis & Andrey Shevchuk & Denis Strebkov, 2014. "Pathways to Satisfaction with Work-Life Balance: The Case of Russian-Language Internet Freelancers," Journal of Family and Economic Issues, Springer, vol. 35(4), pages 542-556, December.
    6. Nikolova, Milena, 2018. "Self-Employment Can Be Good for Your Health," GLO Discussion Paper Series 226, Global Labor Organization (GLO).

    More about this item

    Keywords

    Labor informality; Voluntary vs. involuntary self-employment; Life; income and job satisfaction;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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