IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/245.html
   My bibliography  Save this paper

The effect of self-employment on health: Instrumental variables analysis of longitudinal social security data

Author

Listed:
  • Gonçalves, Judite
  • Martins, Pedro S.

Abstract

The growth of novel flexible work formats raises a number of questions about their effects upon health and the potential public policy implications. However, answering these questions is hampered by data and identification constraints. This is the first paper that draws on comprehensive longitudinal administrative data to examine the impact of self-employment in terms of health. In addition to variation in work status of each individual over time, we also consider variation driven by a number of novel instrumental variables. We also focus on an objective health outcome |hospital admissions| that is not subject to recall or other biases that may affect previous studies. Our findings, based on a representative sample of over 100,000 individuals followed monthly from 2005 to 2011 in Portugal, indicate that self-employment tends to reduce the likelihood of hospital admission by at least half.

Suggested Citation

  • Gonçalves, Judite & Martins, Pedro S., 2018. "The effect of self-employment on health: Instrumental variables analysis of longitudinal social security data," GLO Discussion Paper Series 245, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:245
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/181920/1/GLO-DP-0245.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. repec:eee:jhecon:v:59:y:2018:i:c:p:78-90 is not listed on IDEAS
    2. Browning, Martin & Heinesen, Eskil, 2012. "Effect of job loss due to plant closure on mortality and hospitalization," Journal of Health Economics, Elsevier, vol. 31(4), pages 599-616.
    3. Riphahn, Regina T., 2004. "Employment protection and effort among German employees," Economics Letters, Elsevier, vol. 85(3), pages 353-357, December.
    4. Pedro S. Martins, 2015. "Working to get fired? Regression discontinuity effects of unemployment benefit eligibility on prior employment duration," Working Papers 61, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    5. Bloemen, Hans & Hochguertel, Stefan & Zweerink, Jochem, 2018. "Job loss, firm-level heterogeneity and mortality: Evidence from administrative data," Journal of Health Economics, Elsevier, vol. 59(C), pages 78-90.
    6. Florian Noseleit, 2014. "Female self-employment and children," Small Business Economics, Springer, vol. 43(3), pages 549-569, October.
    7. Cornelius A. Rietveld & Hans Kippersluis & A. Roy Thurik, 2015. "Self‐Employment and Health: Barriers or Benefits?," Health Economics, John Wiley & Sons, Ltd., vol. 24(10), pages 1302-1313, October.
    8. Roy Thurik, 2014. "Entrepreneurship and the business cycle," IZA World of Labor, Institute for the Study of Labor (IZA), pages 1-90, October.
    9. Anne Case & Christina Paxson, 2010. "Causes and consequences of early-life health," Demography, Springer;Population Association of America (PAA), vol. 47(1), pages 65-85, March.
    10. Andrea Ichino & Regina T. Riphahn, 2005. "The Effect of Employment Protection on Worker Effort: Absenteeism During and After Probation," Journal of the European Economic Association, MIT Press, vol. 3(1), pages 120-143, March.
    11. Matthias Benz & Bruno S. Frey, 2008. "Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy," Economica, London School of Economics and Political Science, vol. 75(298), pages 362-383, May.
    12. Case, Anne & Fertig, Angela & Paxson, Christina, 2005. "The lasting impact of childhood health and circumstance," Journal of Health Economics, Elsevier, vol. 24(2), pages 365-389, March.
    13. Annarosa Pesole & Maria Cesira Urzi Brancati & Enrique Fernandez Macias & Federico Biagi & Ignacio Gonzalez Vazquez, 2018. "Platform Workers in Europe: Evidence from the COLLEEM Survey," JRC Working Papers JRC112157, Joint Research Centre (Seville site).
    14. Schneck, Stefan, 2014. "Why the self-employed are happier: Evidence from 25 European countries," Journal of Business Research, Elsevier, vol. 67(6), pages 1043-1048.
    15. Zissimopoulos, Julie M. & Karoly, Lynn A., 2007. "Transitions to self-employment at older ages: The role of wealth, health, health insurance and other factors," Labour Economics, Elsevier, vol. 14(2), pages 269-295, April.
    16. Hessels, Jolanda & Rietveld, Cornelius A. & van der Zwan, Peter, 2017. "Self-employment and work-related stress: The mediating role of job control and job demand," Journal of Business Venturing, Elsevier, vol. 32(2), pages 178-196.
    17. Álvaro A. Novo & Cláudia Duarte & Mário Centeno, 2011. "The impact of the minimum wage on low-wage earners," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Self-employment; hospitalization; sick leave; mortality; instrumental variables;

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:glodps:245. 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: (ZBW - Leibniz Information Centre for Economics). General contact details of provider: http://edirc.repec.org/data/glaboea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.