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Self-Employment and Health: Barriers or Benefits?

Author

Listed:
  • Cornelius Rietveld

    (Erasmus University Rotterdam)

  • Hans van Kippersluis

    (Erasmus University Rotterdam, Tinbergen Institute, Rotterdam)

  • A. Roy Thurik

    (Erasmus University Rotterdam, Tinbergen Institute, Rotterdam, MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier)

Abstract

The self-employed are often reported to be healthier than wageworkers; however, the cause of this health difference is largely unknown. The longitudinal nature of the US Health and Retirement Study allows us to gauge the plausibility of two competing explanations for this difference: a contextual effect of self-employment on health (benefit effect), or a health-related selection of individuals into self-employment (barrier effect). Our main finding is that the selection of comparatively healthier individuals into self-employment accounts for the positive cross-sectional difference. The results rule out a positive contextual effect of self-employment on health, and we present tentative evidence that, if anything, engaging in self-employment is bad for one's health. Given the importance of the self-employed in the economy, these findings contribute to our understanding of the vitality of the labor force. Copyright © 2014 John Wiley & Sons, Ltd.

Suggested Citation

  • Cornelius Rietveld & Hans van Kippersluis & A. Roy Thurik, 2015. "Self-Employment and Health: Barriers or Benefits?," Post-Print hal-02013630, HAL.
  • Handle: RePEc:hal:journl:hal-02013630
    DOI: 10.1002/hec.3087
    as

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    JEL classification:

    • I19 - Health, Education, and Welfare - - Health - - - Other
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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