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Well-being Effects of Self-employment: A Spatial Inquiry

Author

Listed:
  • Abreu, Maria

    (University of Cambridge)

  • Öner, Özge

    () (University of Cambridge, Department of Land Economy)

  • Brouwer, Aleid

    (University of Groningen)

  • van Leeuwen, Eveline

    (Urban Economics Group)

Abstract

Our paper presents an empirical analysis of entrepreneurial well-being using a large-scale longitudinal household survey from the UK that tracks almost 50,000 individuals across seven waves over the period 2009–2017, as well as a number of exploratory case studies. We contribute to the existing literature by investigating how entrepreneurial well-being varies across locations along the urban-rural continuum, and across wealthy-deprived neighbourhoods. We use a Coarsened Exact Matching (CEM) approach to compare the well-being outcomes of individuals who switch into self-employment from waged employment, and show that entrepreneurial well-being, in the form of job satisfaction, is significantly higher for those living in semi-urban locations, relative to those living in urban and rural locations. We argue that semi-urban locations provide an optimal combination of ease of doing business and quality of life. Our results also show that individuals in wealthy neighbourhoods who switch into self-employment experience higher job satisfaction than otherwise comparable individuals living in materially deprived neighbourhoods, although the latter experience greater levels of life satisfaction following the switch.

Suggested Citation

  • Abreu, Maria & Öner, Özge & Brouwer, Aleid & van Leeuwen, Eveline, 2018. "Well-being Effects of Self-employment: A Spatial Inquiry," Working Paper Series 1243, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:1243
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    References listed on IDEAS

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    Keywords

    Entrepreneurship; Well-being; Self-employment; Urban-rural; Neighbourhood effects;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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