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Types of Institutions and Well-Being of Self-Employed and Paid Employees in Europe

Author

Listed:
  • Michael Fritsch

    () (Friedrich Schiller University Jena, and Halle Institute for Economic Research (IWH), Germany)

  • Alina Sornger

    () (John Cabot University Rome, Italy, and Kiel Institute for the World Economy (IfW), and Institute of Labor Economics (IZA Bonn), Germany)

  • Michael Wyrwich

    () (University of Groningen, The Netherlands)

Abstract

This paper analyzes the role of different types of institutions, such as entre- preneurship-facilitating entry conditions, labor market regulations, quality of government, and perception of corruption for individual well-being among self-employed and paid employed individuals. Well-being is operationalized by job and life satisfaction of individuals in 32 European countries measured by data from EU Statistics on Income and Living Conditions (EU-SILC). We find that institutions never affected both occupational groups in opposite ways. Our findings indicate that labor market institutions do not play an im- portant role well-being. The results suggest that fostering an entrepreneurial society in Europe is a welfare enhancing strategy that benefits both, the self- employed and paid employees.

Suggested Citation

  • Michael Fritsch & Alina Sornger & Michael Wyrwich, 2019. "Types of Institutions and Well-Being of Self-Employed and Paid Employees in Europe," Jena Economic Research Papers 2019-002, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2019-002
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    File URL: http://pubdb.wiwi.uni-jena.de/pdf/wp_2019_002.pdf
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    References listed on IDEAS

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    1. repec:kap:sbusec:v:49:y:2017:i:2:d:10.1007_s11187-017-9874-6 is not listed on IDEAS
    2. repec:kap:sbusec:v:52:y:2019:i:2:d:10.1007_s11187-018-0093-6 is not listed on IDEAS
    3. Alina Sorgner & Michael Fritsch & Alexander Kritikos, 2017. "Do entrepreneurs really earn less?," Small Business Economics, Springer, vol. 49(2), pages 251-272, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Entrepreneurship; institutions; well-being; life satisfaction; job satisfaction;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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