The Role of Job Satisfaction in Transitions into Self-Employment
As 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 lessen 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 required in a comparable wage employment position. Existing research identifies better prospects of entrepreneurial earnings as compared to wages as a major stimulus towards selfemployment. However, besides pecuniary motivations, other factors may be considered when it comes to the occupational choice. These include 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.
|Date of creation:||Sep 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Piazza Scaravilli, 2, and Strada Maggiore, 45, 40125 Bologna|
Phone: +39 051 209 8019 and 2600
Fax: +39 051 209 8040 and 2664
Web page: http://www.dse.unibo.it
More information through EDIRC
References listed on IDEAS
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.:
- repec:hal:journl:halshs-00203158 is not listed on IDEAS
- Evans, David S., 1986.
"Tests of Alternative Theories of Firm Growth,"
86-36, C.V. Starr Center for Applied Economics, New York University.
- Richard B. Freeman, 1977.
"Job Satisfaction as an Economic Variable,"
NBER Working Papers
0225, National Bureau of Economic Research, Inc.
- 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.
- Edwin T. Fujii & Clifford H. Lee, 1991. "Empirical Aspects of Self-Employment," Working Papers 199103, University of Hawaii at Manoa, Department of Economics.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
- 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 facoltà di Scienze economiche dell'Università di Lugano
1008, USI Università della Svizzera italiana.
- Giuliano Guerra & Roberto Patuelli & Rico Maggi, 2012. "Ethnic concentration, cultural identity and immigrant self-employment in Switzerland," Chapters, in: Migration Impact Assessment, chapter 4, pages 147-171 Edward Elgar Publishing.
- 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.
- 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.
- Ariel Pakes & Richard Ericson, 1989. "Empirical Implications of Alternative Models of Firm Dynamics," NBER Working Papers 2893, National Bureau of Economic Research, Inc.
- Louis Lévy-Garboua & Claude Montmarquette & Véronique Simonnet, 2007.
"Job Satisfaction and Quits,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- 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.
- H C W L Williams, 1977. "On the Formation of Travel Demand Models and Economic Evaluation Measures of User Benefit," Environment and Planning A, SAGE Publishing, vol. 9(3), pages 285-344, March.
- 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.
- Evans, David S., 1986. "The Relationship Between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries," Working Papers 86-33, C.V. Starr Center for Applied Economics, New York University.
- 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.
- 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.
- Hatice Balli & Bent Sørensen, 2013.
"Interaction effects in econometrics,"
Springer, vol. 45(1), pages 583-603, August.
- 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.
- Andrew Clark & Yannis Georgellis & Peter Sanfey, 1997. "Job Satisfaction, Wage Changes and Quits: Evidence from Germany," Studies in Economics 9711, School of Economics, University of Kent.
- 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.
- 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.
- 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.
- 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.
- 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.
- David G. Blanchflower, 2000.
"Self-Employment in OECD Countries,"
NBER Working Papers
7486, 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.
- Clark, Andrew E & Oswald, Andrew J, 1993.
"Satisfaction and Comparison Income,"
Economics Discussion Papers
10018, University of Essex, Department of Economics.
- 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.
- Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-58, December.
- 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.
- 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.
- Edward P. Lazear & Robert L. Moore, 1984. "Incentives, Productivity, and Labor Contracts," The Quarterly Journal of Economics, Oxford University Press, vol. 99(2), pages 275-296.
- 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.
- 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.
- David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc.
- 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.
- David G. Blanchflower & Richard B. Freeman, 1997. "The Attitudinal Legacy of Communist Labor Relations," ILR Review, Cornell University, ILR School, vol. 50(3), pages 438-459, April.
When requesting a correction, please mention this item's handle: RePEc:bol:bodewp:wp849. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dipartimento Scienze Economiche, Universita' di Bologna)
If references are entirely missing, you can add them using this form.