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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 Economics Research Papers 2019-002, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2019-002
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    Cited by:

    1. Charlie Karlsson & Jonna Rickardsson & Joakim Wincent, 2021. "Diversity, innovation and entrepreneurship: where are we and where should we go in future studies?," Small Business Economics, Springer, vol. 56(2), pages 759-772, February.
    2. Binder, Martin & Blankenberg, Ann-Kathrin, 2021. "Self-employment and subjective well-being," University of Göttingen Working Papers in Economics 411, University of Goettingen, Department of Economics.
    3. Claudia Alvarez & Tatiana Lopez & David Urbano, 2025. "Do institutional dimensions matter at different stages of the entrepreneurial process? A multi-country study," Small Business Economics, Springer, vol. 64(2), pages 353-381, February.
    4. Evelien P. M. Croonen & Florian Noseleit & Michael Wyrwich, 2025. "From values to ventures: how value priorities influence entrepreneurial well-being," Small Business Economics, Springer, vol. 65(1), pages 79-105, June.
    5. Audretsch, David B. & Belitski, Maksim & Chowdhury, Farzana & Desai, Sameeksha, 2024. "Regulating entrepreneurship quality and quantity," Research Policy, Elsevier, vol. 53(2).
    6. Xiaoyu Yu & Xiaotong Meng & Laura Stanley & Franz W. Kellermanns, 2024. "Self-employment and life satisfaction: The contingent role of formal institutions," Small Business Economics, Springer, vol. 63(1), pages 135-163, June.

    More about this item

    Keywords

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    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 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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