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The Value of Autonomy: Evidence from the Self-Employed in 23 Countries

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  • Matthias Benz
  • Bruno S. Frey

Abstract

The self-employed are substantially more satisfied with their work than employed persons. We document this relationship for 23 countries and show that the higher job satisfaction can directly be attributed to the greater autonomy that self-employed persons enjoy. "Being your own boss" seems to provide non-pecuniary benefits from work that point to the existence of procedural utility: autonomy is valued beyond outcomes as a good decision-making procedure. The results hold not only for Western European, North American and former communist Eastern European countries, but largely also for countries with a non-western cultural background.

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  • Matthias Benz & Bruno S. Frey, "undated". "The Value of Autonomy: Evidence from the Self-Employed in 23 Countries," IEW - Working Papers 173, Institute for Empirical Research in Economics - University of Zurich.
    • Handle: RePEc:zur:iewwpx:173
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    References listed on IDEAS

    as
    1. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September.
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    6. Daiji Kawaguchi, 2002. "Compensating Wage Differentials among Self-Employed Workers:Evidence from Job Satisfaction Scores," ISER Discussion Paper 0568, Institute of Social and Economic Research, The University of Osaka.
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    8. 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.
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    More about this item

    Keywords

    self-employment; autonomy; job satisfaction; procedural utility;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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