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Self-employment and Subjective Well-Being

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  • Binder, Martin
  • Blankenberg, Ann-Kathrin

Abstract

Self-employment contributes to employment growth and innovativeness and many individuals want to become self-employed due to the autonomy and exibility it brings. Using "subjective well-being" as a broad summary measure that evaluates an individual's experience of being self-employed, the chapter discusses evidence and explanations why self-employment is positively associated with job satisfaction, even though the self-employed often earn less than their employed peers, work longer hours and experience more stress and higher job demands. Despite being more satisfied with their jobs, the self-employed do not necessarily enjoy higher overall life satisfaction, which is due to heterogeneity of types of self-employment, as well as motivational factors, work characteristics and institutional setups across countries.

Suggested Citation

  • Binder, Martin & Blankenberg, Ann-Kathrin, 2021. "Self-employment and Subjective Well-Being," GLO Discussion Paper Series 744, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:744
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    1. Blankenberg, Ann-Kathrin & Binder, Martin, 2020. "Zum beruflichen Selbstbild und zur Arbeits- und Lebenszufriedenheit im Handwerk in Deutschland," Göttinger Beiträge zur Handwerksforschung 42, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    2. Nikolova, Milena & Nikolaev, Boris & Boudreaux, Christopher, 2021. "Being Your Own Boss and Bossing Others: The Moderating Effect of Managing Others on Work Meaning and Autonomy for the Self-Employed and Employees," IZA Discussion Papers 14909, Institute of Labor Economics (IZA).
    3. Medard Kofi Adu & Lauren J. Wallace & Kwabena F. Lartey & Joshua Arthur & Kenneth Fosu Oteng & Samuel Dwomoh & Ruth Owusu-Antwi & Rita Larsen-Reindorf & Vincent I. O. Agyapong, 2021. "Prevalence and Correlates of Likely Major Depressive Disorder among the Adult Population in Ghana during the COVID-19 Pandemic," IJERPH, MDPI, vol. 18(13), pages 1-19, July.
    4. Suppa, Nicolai, 2021. "Unemployment and subjective well-being," GLO Discussion Paper Series 760, Global Labor Organization (GLO).

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    18. Peter van der Zwan & Jolanda Hessels & Cornelius A. Rietveld, 2015. "The Pleasures and Pains of Self-Employment: A Panel Data Analysis of Satisfaction with Life, Work, and Leisure," Tinbergen Institute Discussion Papers 15-099/VII, Tinbergen Institute.
    19. Jolanda Hessels & José María Millán & Concepción Román, 2015. "The Importance of Being in Control of Business: Work Satisfaction of Employers, Own-account Workers and Employees," Tinbergen Institute Discussion Papers 15-047/VII, Tinbergen Institute.
    20. Mariano Rojas & Karen Watkins-Fassler & Lázaro Rodríguez-Ariza, 2022. "The Life Satisfaction of Owner-Manager Entrepreneurs When the Business of Business is not only Business," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(4), pages 2251-2275, August.

    More about this item

    Keywords

    self-employment; entrepreneurship; subjective well-being; job satisfaction; life satisfaction;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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