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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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    More about this item

    Keywords

    self-employment; entrepreneurship; subjective well-being; job satisfaction; life satisfaction;

    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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