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Job dissatisfaction of the self-employed in Indonesia

Author

Listed:
  • Illoong Kwon

    () (Seoul National University)

  • Kitae Sohn

    () (Curtin University
    Konkuk University)

Abstract

Abstract In developed countries, the self-employed have been found to be more satisfied with their jobs than paid employees. We found the exact opposite for a developing country after analyzing 8732 respondents in the Indonesian Family Life Survey. The job dissatisfaction of the self-employed was not fully explained by earnings, personal traits, job characteristics, anticipation, or adaptation, but mostly by segregation into a small number of industries with few job benefits. This finding is consistent with the dual labor market theory. We also found that among the self-employed, those with the highest probability of being paid employees were the least satisfied. Paid employment was highly sought after in developing countries, and these were presumably self-employed workers with high abilities. This finding cannot be explained by the dual labor market theory alone. To explain this inconsistency, we enriched this theory with relative deprivation. Our results suggest that the existence of the dual labor market and relative deprivation are important determinants of the job satisfaction of the self-employed in developing countries.

Suggested Citation

  • Illoong Kwon & Kitae Sohn, 2017. "Job dissatisfaction of the self-employed in Indonesia," Small Business Economics, Springer, vol. 49(1), pages 233-249, June.
  • Handle: RePEc:kap:sbusec:v:49:y:2017:i:1:d:10.1007_s11187-016-9820-z
    DOI: 10.1007/s11187-016-9820-z
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    References listed on IDEAS

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    Cited by:

    1. Tho Pham & Oleksandr Talavera & Mao Zhang, 2018. "Self-employment, financial development and well-being: Evidence from China, Russia and Ukraine," Working Papers 2018-03, Swansea University, School of Management.

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