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Is Becoming Self‐Employed a Panacea for Job Satisfaction? Longitudinal Evidence from Work to Self‐Employment Transitions

Author

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  • Yannis Georgellis
  • Afees Yusuf

Abstract

Using British longitudinal data, we investigate whether individuals enjoy a permanent boost in their job satisfaction by becoming self‐employed. We track individuals before and after transitions from work to self‐employment and record changes in their job and domain satisfaction scores. We find that job satisfaction follows a rising trajectory immediately upon transition into self‐employment and a declining trajectory in subsequent years, as expectations fail to materialize and the novelty of the new venture wanes down. Thus, our findings confirm that job satisfaction gains are not necessarily permanent, suggesting that self‐employment is not always a panacea for job satisfaction.

Suggested Citation

  • Yannis Georgellis & Afees Yusuf, 2016. "Is Becoming Self‐Employed a Panacea for Job Satisfaction? Longitudinal Evidence from Work to Self‐Employment Transitions," Journal of Small Business Management, Taylor & Francis Journals, vol. 54(S1), pages 53-76, October.
    • Handle: RePEc:taf:ujbmxx:v:54:y:2016:i:s1:p:53-76
    DOI: 10.1111/jsbm.12292
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    Cited by:

    1. Jidong Yang & Yunqi Zeng & Qing Wang, 2023. "The Easterlin paradox of entrepreneurs during China's economic transition," International Studies of Economics, John Wiley & Sons, vol. 18(2), pages 211-237, June.
    2. Binder, Martin, 2024. "Entrepreneurial worries: Self-employment and potential loss of well-being," Journal of Economic Psychology, Elsevier, vol. 105(C).
    3. Leandro Iván Canzio & Felix Bühlmann & Jonas Masdonati, 2023. "Job satisfaction across Europe: An analysis of the heterogeneous temporary workforce in 27 countries," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(3), pages 728-754, August.
    4. Martin Mabunda Baluku & Loyce Kiiza Kobusingye & Betty Namale & Edward Bantu, 2026. "Psychological Outcomes and Commitment: A Cross-country and Gender Analysis of the Self-employed and Salary-employed Individuals," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 12(1), pages 52-74, January.
    5. Jingjing Qu & Jun Li & Yannis Georgellis, 2025. "The psychological strain of becoming self-employed: a longitudinal investigation of honeymoon-hangover effects," Small Business Economics, Springer, vol. 64(2), pages 433-449, February.
    6. Carla Houkamau & Kieren Lilly & Jamie Newth & Kiri Dell & Jason Mika & Chris Sibley, 2024. "Better off solo? Comparative well-being of MÄ ori employers, sole traders and paid employees," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 45(4), pages 1294-1324, November.

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