Article

Happiness and Health: Well-Being among the Self-Employed

Authors:
To read the full-text of this research, you can request a copy directly from the author.

Abstract

Is well-being greater among the self-employed than among wage-earners? In order to investigate this question, data from the Swedish Level-of-Living Survey for the 2 years 1991 and 2000 are used and six indicators of well-being are considered: (1) job satisfaction, (2) life satisfaction, (3) whether the job is stressful, (4) whether the job is mentally straining, (5) mental health problems, and (6) poor general health. Six logit models are estimated and to handle the possible selection of more satisfied individuals and individuals more able to handle stress into self-employment, conditional fixed-effects logit models are estimated for each of the outcomes. We find that self-employment leads to an increase in job satisfaction. We also find a positive correlation between self-employment and life satisfaction. There is some evidence that self-employment leads to more mental health problems, and that the self-employed are less likely to perceive their job as mentally straining.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the author.

... Individuals have less incentive to become entrepreneurs unless they expect higher subjective well-being. Indeed, research on individuals' decisions to become entrepreneurs has established that self-employed individuals have higher job satisfaction than employees (e.g., Blanchflower and Oswald 1998;Blanchflower 2000;Andersson 2008;Benz and Frey 2008b). The findings of these studies indicate a positive relationship between entrepreneurship and subjective well-being. ...
... As discussed, prior literature has established that self-employed individuals have higher job satisfaction than employees (e.g., Blanchflower and Oswald 1998;Blanchflower 2000;Andersson 2008;Benz and Frey 2008b). However, as already mentioned, Tiefenbach and Kohlbacher (2015) found a negative relationship between entrepreneurship and subjective well-being, using data from the 2011 National Survey on Lifestyle Preference in Japan. ...
... Essentially, individuals have less incentive to become entrepreneurs unless they expect higher subjective well-being. Indeed, the findings of previous studies indicate a positive relationship between entrepreneurship and subjective wellbeing (e.g., Blanchflower and Oswald 1998;Blanchflower 2000;Andersson 2008;Benz and Frey 2008b). In this context, a positive relationship between entrepreneurship and subjective well-being is hypothesized. ...
Article
Full-text available
This study investigates the relationship between entrepreneurial experience and subjective well-being. Using an original survey on subjective well-being, entrepreneurial experience, level of wealth (inferred from observed variables of income, cash, and assets), and personal attributes of 10,001 individuals in Japan, we examine the factors that mediate the association between entrepreneurial experience and subjective well-being. We measure entrepreneurial experience as an individual’s experience in funding, owning, and running a corporation. We consider the mediating effect of the level of wealth on subjective well-being because entrepreneurial well-being is associate with wealth derived from income, cash, and assets. Our results provide no significant evidence that individuals with entrepreneurial experience have higher subjective well-being. However, we find a positive indirect effect of entrepreneurial experience on subjective well-being through wealth and a negative indirect effect through debt. The findings of this study indicate the importance of considering the mediating effect of financial motives in entrepreneurial well-being.
... Add to this potential work-life-balance conflicts (Parasuraman and Simmers 2001) and stress (the literature here is somewhat divided, see, e.g., Stephan and Roesler 2010;Baron et al. 2016;Hessels et al. 2017;Andersson 2008;Schieman et al. 2006), it can be conjectured that the well-being consequences of selfemployment might be quite heterogeneous and ill-captured by solely relying on income as a measure of entrepreneurial success (Cooper and Artz 1995;Stephan 2018; Baron et al. 2016, p. 746). For this reason, the present chapter adopts a broader view of well-being that can capture both monetary and nonmonetary aspects of the self-employment experience. ...
... Self-employment is robustly positively associated with job satisfaction throughout a large number of studies from different contexts (Blanchflower and Oswald 1998;Benz and Frey 2004;Blanchflower 2004;Prottas and Thompson 2006;Benz and Frey 2008a;Andersson 2008). The evidence pertains to short-term gains from switching to self-employment, but can be found even for those who are selfemployed for more than 5 years . ...
... Alesina et al. (2004) do so too for data from 1981-1996 (USA) and for Europe (1975)(1976)(1977)(1978)(1979)(1980)(1981)(1982)(1983)(1984)(1985)(1986)(1987)(1988)(1989)(1990)(1991)(1992), with evidence again coming from cross-sections, and somewhat tempered by subgroup findings that locate these effects only for richer individuals and those of certain political persuasions (right-wing political preferences in the USA, left-wing in the European data). A similar dependence on subgroups or methods and models used is found in Blanchflower (2004) and Andersson (2008). ...
... A large number of studies have verified that self-employed people are healthier, happier, and more satisfied at work than employed workers (e.g., Andersson, 2008;Stephan and Roesler, 2010;Sevä Johansson et al., 2016). Reasons suggested for these results are that the self-employed have high levels of autonomy and flexibility, and a strong feeling of pursuing their goals (Shir et al., 2019). ...
... However, a study in the United Kingdom showed that individuals with poorer mental health were more likely to change from employment to self-employment (Stephan et al., 2020a). Other studies indicate that the self-employed have worse well-being (e.g., Parslow et al., 2004;Gunnarsson et al., 2007) or that there are no differences in well-being compared to organizational employees (Andersson, 2008). According to Stephan (2018), high uncertainty, great responsibility for their businesses and employees, and time pressure over longer periods can result in mental and physical disorders. ...
Article
Full-text available
The present study analyzed the impact of business operations, work and family circumstances, and well-being on the risk of sickness presenteeism for Swedish self-employed workers during the Covid-19 pandemic. It is of great importance to investigate the impact of the pandemic on the self-employed and their enterprises because they are seen as key drivers of economic growth and constitute an expanding group in many countries. Data were obtained from 845 self-employed workers by a web-based survey including questions about background information, work and family circumstances, well-being, sickness presenteeism, and questions about the pandemic. Results were that around 40% of the self-employed introduced new products, processes, and marketing methods, and just over 50% attempted to get new customers during the pandemic. Nearly half of the self-employed people reported that they lost contracts, and 22% judged the risk of bankruptcy to be quite or highly likely. Regression analyses showed that the more the self-employed reported impact on business indicators, increased work hours, a higher level of work-family conflict, and a lower level of mental well-being, the higher the risk of sickness presenteeism. The most common reasons given by the participants for sickness presenteeism during the pandemic were “nobody else can carry out my responsibilities,” “I can't afford to take sick leave” and “I enjoy my work.” Conclusions are that a critical event such as the pandemic probably adds to an already high workload for the self-employed. Impact on business operations such as developing new products/services and marketing, risk of bankruptcy and increased work hours seems to be important factors for explaining sickness presenteeism among the self-employed. Theoretical contributions from the study suggest that critical events such as the Covid-19 pandemic should be considered as an important environmental factor when studying sickness presenteeism among self-employed.
... A large number of studies have shown that selfemployed people and managers in micro-sized enterprises report higher levels of job satisfaction and subjective well-being than those employed in larger organisations [25,26,35,36]. Some of the suggested reasons for these results are that self-employed people and managers in micro-sized enterprises have high levels of autonomy, flexibility and a strong feeling of pursuing their goals [37]. ...
... Other studies have found no health differences between selfemployed people and organisational employees. In one Swedish study, employees who subsequently started their own businesses were more satisfied with their jobs, but no differences were found in self-rated health indicators between self-employed people and employees [35]. One explanation for the above contradictory results could be the heterogeneity of self-employed people and managers of micro-sized enterprises [9,27]. ...
Article
Full-text available
The aim of this study is to identify how managers of micro-sized enterprises experience the impact of the Covid-19 pandemic on their business operations, work-life balance and well-being. Further, the study aims to make comparisons between managers of micro-sized businesses and managers of small-sized businesses. This mixed-method study is based on qualitative interviews with ten managers of micro-sized enterprises and a questionnaire answered by 95 managers of micro-sized and small-sized enterprises in regions in the north of Sweden. Managers of micro-sized enterprises reported significantly worse scores for mental well-being, job satisfaction and life satisfaction in comparison with managers of small-sized enterprises. Three themes emerged from the qualitative analysis: Changed leadership role, Impact on private life and Impact on well-being. In the interviews, the managers of micro-sized enterprises reported that the pandemic had increased their workload and forced them to mobilise strategies for enterprise survival. This study indicates that managers of micro-sized enterprises had changed their leadership role and increased their workload and number of work tasks, including supporting the employees, developing strategies for business survival and applying for governmental support. However, the managers demonstrated creativity in finding new solutions for their enterprises. ARTICLE HISTORY
... In that case, farmers' well-being and motivation are to maximize their profit and improve their productivity in the paddy farm. This finding is parallel to the existing studies on the economics of happiness that income (or profit) is a significant predictor of an individual's subjective happiness [1], [7], [9]. The goodness of fit indicates that only 4% of the variability in the response variable is explained by the model. ...
Article
Full-text available
Good economic profitability in rice farming is known to have a positive influence on the happiness or well-being of farmers. This study investigated the relationship between profit and happiness of rice farmers in Leyte, Philippines under the carrying out of Rice Tariffication Law (RTL) in the country. The study employed cross-sectional and secondary data from an existing study from rice farming literature that measures the profit and corresponding happiness of a farmer in one cropping season. Regression modeling was used to elucidate the correlation between profit and happiness, and K-means clustering was employed to categorize a group of farmers that have more or less the same characteristics. Results showed that, on average, profit and happiness are relatively low during the implementation of RTL. The bivariate linear regression model has shown that there is a positive relationship between profit and happiness. This implies that as profit increases, the happiness of a farmer also increases. In addition, the logistic regression has revealed that the likelihood of a farmer being happy increases by 0.324% when the profit increases by 1%. Moreover, the ordered logistic regression has shown that as profit increases by 1%, farmers' log odds of being happy increase by 0.0129. Furthermore, by K-means clustering, the dominant of the farmers (45.76%) are grouped as low profit and happiness, and only 7.91% are categorized as high profit and happiness under RTL. Hence, the study recommends that the Philippine government must subsidize the local farmers' needs to increase their economic profit and improve their well-being as a farmer.
... Several studies have looked into the dynamics of job satisfaction and found that entrepreneurs are more satisfied with their career compared to paid employees (Andersson, 2008;Benz & Frey, 2004Bradley & Roberts, 2004;Noorderhaven et al., 2004), despite the fact that entrepreneurs often have a lower and more volatile income, work long hours, and face higher uncertainty. Economists explain this premium by the procedural utility (Benz & Frey, 2004: entrepreneurs enjoy what they are doing rather than the final outcome. ...
Chapter
Full-text available
This study examines the job satisfaction dynamics of entrepreneurs. Using the Household Income and Labour Dynamic in Australia (HILDA) survey, we evaluate the temporal pattern of anticipation, reaction and adaptation in job satisfaction occurring before, during, and after the transition into self-employment. Results vary across the different domains of job satisfaction: while entrepreneurship entry induces a short-term boost in overall job satisfaction and satisfaction with the work itself, it has a long-lasting negative impact on satisfaction with income and job security. Further, entrepreneurs exhibit positive adaption to balancing work, non-work commitments and leisure time. No significant gender-differences were identified.
... Controlling for hourly wages in APS restricts to salaried workers, However, in the UK approximately 70% of GPs are self-employed. The exclusion of hourly wages in the analysis, therefore, allow us to test SWB including both self-employed and salaried [42][43][44] and provide a relevant insight on the SWB of selfemployed GPs as they represent approximately 70% of all primary care physicians. In the context of the analysis developed here, estimates suggest that physicians are happier, more satis ed with their lives and less anxious than other workers. ...
Preprint
Full-text available
Background: The analysis of wellbeing among physicians has focused on stress, burnout, and job satisfaction but most analyses rely on small and unrepresentative samples. Using self-reported data between 2011/12 and 2014/15 from a large well-established UK dataset - the Annual Population Survey (APS), this study examines the main subjective wellbeing metrics of physicians in the UK and compares with those of other professionals (lawyers and accountants). Methods: APS is the first survey in the UK that incorporated SWB metrics in April 2011. Since then, the Office for National Statistics have included those metrics in other surveys. The analysis relies on APS data from 2011/12 to 2014/15 and examines the associations between subjective wellbeing variables and hours of work, hourly wages, and underemployment. Estimates are provided for all occupations of interest (pooled model) and then conditioning on each occupation using general linear models (ordinary least squares). Results: A total of 11,810 respondents are included in the analysis among the four main occupations (primary care physicians – general practitioners in the UK, hospital doctors, lawyers, and accountants) of which 8,011 are salaried workers (67.83%). Physicians are more satisfied and happier with their lives and less anxious than other professionals. Age affects negatively to happiness and satisfaction with their lives (-2.1% and -5.1% respectively) and females are more stressed (10.7%) overall. Incorporating preferences to work more hours (underemployment) physicians’ wellbeing is not affected but those of lawyers and accountants worsens. Conclusions: Physicians are less anxious, happier, and more satisfied than lawyers or accountants. Total hours of work do not seem to affect SWB for physicians when the variable is the aggregate measure but working more overtime hours is associate with lower wellbeing levels. Working fewer hours than desired (underemployment) is also associated with changes in wellbeing levels. Increasing the hours of work of underemployed physicians could be an inexpensive solution to overcome the alleged shortage of health workers.
... Aikaisemmat tutkimukset osoittavat, että yrittäjät ovat tyytyväisempiä työhönsä kuin palkansaajat (esim. Andersson 2008;Benz & Frey 2008). Myös Suomessa on havaittu vastaavaa. ...
... Focusing on employment, it was found that there is a positive correlation between self-employment and life satisfaction; in addition, the self-employed are less likely to perceive their jobs as mentally straining (Andersson, 2008). The self-employed report the lowest level of mental health problems, especially compared to wage earners (Bergman et al., 2021) and the self-employed exhibit higher levels of self-control and conscientiousness (Postigo et al., 2021). ...
Article
On October 4, 2021, a severe technical service failure of Meta (previously Facebook) caused a worldwide “outage” for six hours. Billions of people, not able to access their social media accounts, experienced different levels of stress. This study took advantage of these unique circumstances to test the stress caused by sudden lack of online access using three main factors: the fear of missing out (FoMO) effect, social media intensity, and demographic factors. In the two days immediately following this event, we conducted an online survey, with 571 adults responding. Using both quantitative and qualitative analyses, data were collected to explore the emotional experiences and predictors of the stress adults underwent during the social media outage. The content analysis revealed four types of reactions: (1) feeling anxious at first, but then feeling better after realizing the outage was global; (2) having only negative feelings; (3) having only positive feelings and even experiencing a version of the joy of missing out (JoMO); and (4) feeling indifferent. A hierarchical regression indicated that stress can be significantly predicted by FoMO, social media intensity, emotional experience, age, and marital status. In addition, FoMO and intensity were found to be mediators between age and stress. Finally, we found associations between stress and gender and employment, with self-employed women experiencing less stress than men and not self-employed women experiencing more stress than men. The findings are discussed in light of the FoMO vs. JoMO effects, the social comparison theory, and the role of demographic factors in reducing or increasing stress when social media is not available.
... However, Rietveld et al. believed that self-employment had a significant negative effect on health [18]. Although selfemployment would increase job satisfaction but it could also result in some mental problems [12,19,20]. Meng and Xue believed that self-employment had a negative effect on the mental health of migrant workers [21]. ...
Article
Full-text available
Background Self-employment is one of the most common forms of employment for migrant workers in China. However, migrant workers’ lifestyle and behavior, as well as health disparities among them, would be impacted by self-employment. This research aims to explore the mechanism and group differences of the effect of self-employment on health inequality among Chinese migrant workers. Materials and methods To explore the effect of self-employment on health inequalities among migrant workers, this research uses the data from the 2018 China Migrant Workers Dynamic Monitoring Survey, and the RIF-I-OLS decomposition method. Results We find that self-employment will reduce the health inequality of Chinese migrant workers significantly, especially among migrant workers with low education, low income, and low social integration. A further examination reveals that self-employment can directly promote the self-rated health of migrant workers. Additionally, it indirectly alleviates the health inequality among migrant workers by mediating effect of expanding access to public welfare, such as by establishing health records and strengthening health education. Conclusion The government should permit and encourage migrant workers to engage in self-employment. It is necessary to provide public services such as health education, health records, and health rights for migrant workers, and focus on the employment of migrant workers in city, especially those with low income and low education. we believe that measures should be taken to enhance migrant workers’ sense of belonging in urban China Only on this basis can health inequality among migrant workers be truly reduced.
... Others have noted that self-employment can lead to greater job and life satisfaction [24][25][26][27]. ...
Article
Full-text available
The COVID-19 pandemic has had a profound impact on the arts sector, disrupting livelihoods and professional networks and accentuating the instability that is common for creative workers. Gaps in support for grassroots organisations and freelance workers have highlighted structural inequalities within the industry, and the significant challenges for individual workers in the early stages of their career. Yet, the pandemic has also emphasised the importance of the arts as a community resource and its role in supporting wellbeing and togetherness. This qualitative study explored the experiences of the pandemic for early career arts workers, focusing on its impacts upon their livelihoods and how it has shaped their future career directions. Sixteen arts and cultural workers across a variety of sectors including theatre, film, circus, music, and literature participated in solo, semi-structured interviews during April–June 2021. Thematic analysis identified three overarching themes: (i) ‘Pandemic precarity and creative practice’, (ii) ‘PostCOVID I: Inclusivity and diversifying audiences’, and (iii) ‘PostCOVID II: Adapting, developing, and disrupting cultural practices’. Overall, the experiences capture an early career workforce that, while committed and engaged with their creative practice, also seeks a more equitable, fairer, and diverse industry that protects artists and engages more flexibly with broader audiences.
... When self-employment rates were corrected for this and factors including hours worked, a decline was observed. Despite the apparent declining, or perhaps at best, static trend in self-employment growth in the EU, a wealth of research shows that the self-employed are more satisfied with their work than directly employed workers (Benz and Frey, 2004;Andersson, 2008;Lange, 2012;Binder and Coad, 2013), and the self-employed report significantly greater accomplishment in their lives than those directly employed (Warr, 2018). This appears to run counter to data suggesting, for example, that self-employed workers spend more time at work than their directly-employed counterparts (European Commission, 2016a), earn less than those directly employed (Hamilton, 2000;Green and Mostafa, 2012), experience higher levels of stress and anxiety (Warr, 2018) and regularly lose sleep over worry (Blanchflower, 2004). ...
Article
Full-text available
The current mixed-methods study explored differences in Job-Specific Well-being (JSWB) amongst self-employed and directly-employed workers in creative and corporate workplaces. A descriptive, cross-sectional, comparative design with open-ended questions, employing purposive sampling, was used. A self-report, mixed-method, digital questionnaire was used for data collection and respondents (N=230) were sourced globally. Analyses showed a significant difference in JSWB for overall self-employed compared with overall directly-employed workers. An effect of supervisory responsibility on JSWB was observed among groups of directly-employed workers. For self-employed workers, no significant effect of supervisory responsibility was seen for levels of JSWB. Additionally for self-employed workers, no significant difference in JSWB was seen based on "necessity" or "opportunity" self-employment. Generally, findings showed that both self-employed and directly employed workers in the current sample were dissatisfied with daily work. Findings were mixed, and results prompt important considerations for existing research.
... Several studies have looked into the dynamics of job satisfaction and found that entrepreneurs are more satisfied with their career compared to paid employees (Andersson, 2008;Benz & Frey, 2004Bradley & Roberts, 2004;Noorderhaven et al., 2004), despite the fact that entrepreneurs often have a lower and more volatile income, work long hours, and face higher uncertainty. Economists explain this premium by the procedural utility (Benz & Frey, 2004: entrepreneurs enjoy what they are doing rather than the final outcome. ...
Chapter
Full-text available
This study examines the job satisfaction dynamics of entrepreneurs. Using the Household Income and Labour Dynamic in Australia (HILDA) survey, we evaluate the temporal pattern of anticipation, reaction, and adaptation in job satisfaction occurring before, during, and after the transition into self-employment. Results vary across the different domains of job satisfaction: while entrepreneurship entry induces a short-term boost in overall job satisfaction and satisfaction with the work itself, it has a long-lasting negative impact on satisfaction with income and job security. Further, entrepreneurs exhibit positive adaption to balancing work, non-work commitments, and leisure time. No significant gender differences were identified.
... However, the concept of well-being in the entrepreneurship context seems to be much more complex than previously assumed (Shir et al., 2019). In general, studies show that self-employed individuals are considerably more satisfied with their lives and have higher SWB than employed individuals are, despite the fact that they work longer hours, experience more stress and strain, have irregular schedules and higher workloads compared to regular employees (Andersson, 2008;Benz and Fray, 2008;Binder and Coad, 2012;Stephan and Roesler, 2010). While the co-existence of strain and SWB may seem puzzling, some studies (e.g. ...
Article
Purpose: Passion is considered a critical aspect of entrepreneurship. According to the dualistic model of passion (DMP), entrepreneurs’ passion for their work can be harmonious or obsessive, leading to different personal and work outcomes. Drawing on DMP and the self-determination theory, this paper investigates these two types of passion for work and their effects on entrepreneurs’ subjective well-being (SWB), psychological strain and social loneliness. Design/methodology/approach: The authors conducted a self-administered online survey with 312 entrepreneurs in Turkey. The authors selected the sample using purposive sampling and referrals through snowballing via associations, university start-up organizations, entrepreneur lists and personal networks. The data are analyzed using multiple regression analysis. Findings: The results show that harmonious passion is negatively related to strain, while obsessive passion is positively related to both strain and social loneliness. Furthermore, both types of passion are associated with higher SWB. Finally, age moderates the relationship between obsessive passion and SWB. Practical implications: The findings draw attention to another dark side to entrepreneurship and a useful perspective to raise awareness that entrepreneurs may think positively of obsessive passion and ignore the negative consequences. Originality/value: This study contributes to the literature by showing that both positive and negative consequences of passion may co-exist based on the entrepreneurs’ self-perceptions. It also contributes to the very scarce research in non-western, emerging contexts in entrepreneurial passion research and constitutes the first study conducted on this topic in Turkey.
... Quality of life is one of the main conceptual categories in many scientific disciplines and in socioeconomic practice. It is often used as a measure of the level of social development in comparative studies of countries or social groups [1][2][3]. According to the authors of this study, the assessment of health-related quality of life (H-RQoL) is particularly noteworthy in relation to entrepreneurs (subjective health-related quality of life is referred to in this paper as health-related quality of life, satisfaction with one's own health, or perceived health condition). ...
Article
Full-text available
Background: Quality of life is one of the most important conceptual categories in many scientific fields and socio-economic practices. In the authors' opinion, the assessment of the overall quality of life and the health-related quality of life of private entrepreneurs deserves particular attention. Until now, quality of life and its determinants in entrepreneurs have been investigated by few authors. The aim of this study was to identify and assess the key determinants of quality of life and its health-related aspects in entrepreneurs from Wroclaw, Poland. Methods: A questionnaire survey was carried out in a group of 616 entrepreneurs selected from among 4332 individuals (2276 women, 2056 men) who had participated in a study on the socioeconomic determinants of quality of life and physical activity of Wrocław residents of working age. The main research method was a diagnostic survey using S-ES and WHOQOL BREF questionnaires. Information was obtained on respondents' quality of life and perceived health condition, as well as sex, age, education, marital status, number of people in the household, income per capita, savings, and indebtedness. The collected data were subjected to statistical analysis using numerical distribution, medians, and quartile deviation. Crude and adjusted odds ratios were used to assess relationships between entrepreneurs' quality of life and socioeconomic status. Results: Over 66% of Wroclaw entrepreneurs rated their overall quality of life as average or above average and about 34% as below average. An average or above assessment of perceived health condition was provided by 71% of respondents, and below average by 29% of respondents. Health-related quality of life was assessed as average or above average in the environmental domain by 79%, physical domain by 77%, social domain by 65%, and psychological domain by 58% of the entrepreneurs. Among the respondents significant correlations were found between quality of life and perceived health condition; family status, i.e., marital status; number of persons in the household; and financial status, i.e., per capita income, savings, and debt. Conclusions: The results of this study can be used for managing the quality of life of entrepreneurs. Quality of life determinants should be constantly updated, as they may change along with further economic development and Poland's economic convergence with better developed EU countries.
... This seems consistent with the evidence that the self-employed are significantly more satisfied with their jobs than those in full-time employment (Benz & Frey, 2008;Blanchflower, 2000;Blanchflower & Oswald, 1998;Hundley, 2001). 2 Yet the picture is less clear when it comes to overall life satisfaction. While cross-sectional studies such as Alesina, Di Tella, and MacCulloch (2004), Blanchflower and Oswald (1998), and Hessels, Arampatzi, van der Zwan, and Burger (2018) have documented evidence that the self-employed people are more satisfied with life than employees, longitudinal studies such as Andersson (2008) and Powdthavee (2008) have reported a statistically insignificant association between self-employment and life satisfaction when individual fixed-effects are taken into account. More recently, Binder and Coad (2013) applied matching estimators on a sample of individuals from the British Household Panel Surveys and find a significant increase in life satisfaction in the year of making the transition from regular employment to self-employment. ...
Article
Full-text available
The formation of expectations is considered a fundamental aspect of the decision process when people reason about entering self-employment. We evaluate the accuracy of newly self-employed individuals’ predictions of their overall future well-being. Based on individual panel data for Germany, we find that they, on average, are overly optimistic when we compare their predictions right after the status change with their actual life satisfaction five years later. This finding is robust to controlling for any time invariant personality traits like individual optimism. And it also holds for those self-employed individuals who successfully remain in business for at least five years. A possible reason for the biased prediction might be that they underestimate the heavy workload reflected in higher working hours than desired, as well as the decline in leisure satisfaction after the status change.
... Until recently, studies on entrepreneurs' happiness have focused on analyzing the influence of health parameters, gender, prosocial motivation, or job satisfaction on their subjective state of well-being [10][11][12][13]. Such studies have also tried to show that entrepreneurs or self-employed individuals are generally happier than salaried people in terms of the daily performance of their jobs [14]. However, few multidisciplinary studies empirically explore whether happiness leads individuals to be future technological entrepreneurs or consider other new opportunities [15]. 2 of 18 In our view, the development of this type of work will be noteworthy when considering the happiness of this human capital as a strategic element that facilitates the creation of innovative and high-quality products or services [16]. ...
Article
Currently, age is characterized, on the one hand, by the existence of governance systems that are gradually eroding the Welfare State and, on the other hand, by the implementation of business management models based on precarious work and a massive reduction in jobs. This work aims to analyze the degree of happiness perceived in the group of Spanish entrepreneurs (either with or without employees), compared to that perceived by employees (whether permanent or temporary); and if that happiness is associated with certain socio-demographic variables gender, level of studies and income level).For this reason, there is a need to consider these working hypotheses proposed. Starting with the general null variable (H0), its opposite is established: H1. There is a relationship between the type of professional situation (employee, businessperson, self-employed, cooperative, etc.) and happiness; that is, there is an association between the different employment categories (represented by the variable professional situation) and the value given to the variable that measures the degree of perceived happiness. The averages of the distributions for each category are not similar. Keywords: Happiness, Entrepreneur, Wage Earners, Well-being, Professional Situation.
... ng is linked to psychological and behavioral bias.(Phan, Rieger, & Wang, 2018) Stock market trading is a form of self-employment for some professional traders. In general, self-employment leads to increased job satisfaction and life satisfaction but could lead to more mental health problems even though they do not perceive it as mentally straining.(Pernilla, 2008) Lifestyle: Sleep disorders have gained prevalence because of modern socio-economic and lifestyle factors. Advocacy for sleep quality, quantity, and hygiene is necessary.(Siddalingaiah, 2017) The Indian capital markets have Monday to Friday week. The Equity market allows tradingbetween 9:00 AM to 3:30 PM. However, the commodity market is ...
Article
Full-text available
Background: Stock market traders can be successful by picking the right financial security/instrument to invest/trade and then prepare and executing the trading plan. However, the success rate from doing so is only partly. The other part of success, which, unfortunately, is mostly ignored, comes from emotional and behavioral balance and control. Research already proved the connections between emotions and the mental health of individuals. Objectives: This paper explores the mental health aspects of a typical Indian stock market trader. Design: A self- constructed questionnaire is administered on a sample of 250 where 140 respondents were taken for the study on four dimensions-general trading stress profile, general mental and health profile, general lifestyle profile, and general financial status profile. Method: Data thus collected is statistically measured and tested using Chi-square, Pearson correlation, and simple linear regression. Results: The research finds that age and marital status influence the stock market trader experience along with the highest, moderate and lowest areas where the trader is affected on the above-mentioned dimensions. Conclusion: Findings from this research can help traders in bettering their mental health and thereby improve their trading outcomes.
... The higher level of happiness among entrepreneurs may be due to the fact that discontent with a salaried job may foster the desire to become self-employed, however its impact on the actual start-up is unknown (Guerra & Patuelli, 2016). In any case, people who become self-employed report a greater rise in work satisfaction when compared to their prior employment than those who switch to another paid position (Andersson, 2008;Benz & Frey, 2008). According to Krishnan and Kamalnabhan (2015), women company owners are more satisfied with their possessions. ...
Article
Full-text available
The purpose of this study is to investigate the influence of MSES performance in modulating the link between the entrepreneurial environment and entrepreneurial happiness. The biggest issue confronting Small and Medium Enterprises (SMEs) in Indonesia today is poor entrepreneurial satisfaction, which is connected to SMEs' performance as well as the entrepreneurial environment. Many businesses fail because founders are unable to operate them. Entrepreneurs that fail likely to abandon their venture. The data for this study will be processed quantitatively using AMOS SEM. The consequences of this research will be to widen the scope to include not just the well-being of entrepreneurs, but also the numerous consequences on other things.
... Until recently, studies on entrepreneurs' happiness have focused on analyzing the influence of health parameters, gender, prosocial motivation, or job satisfaction on their subjective state of well-being [10][11][12][13]. Such studies have also tried to show that entrepreneurs or self-employed individuals are generally happier than salaried people in terms of the daily performance of their jobs [14]. However, few multidisciplinary studies empirically explore whether happiness leads individuals to be future technological entrepreneurs or consider other new opportunities [15]. 2 of 18 In our view, the development of this type of work will be noteworthy when considering the happiness of this human capital as a strategic element that facilitates the creation of innovative and high-quality products or services [16]. ...
Article
Full-text available
Abstract Currently, age is characterized by implementing business management models based on precarious work and a massive reduction in jobs. This article aims to analyze the degree of happiness perceived in Spanish entrepreneurs, as opposed to that perceived by the employees, and if that happiness is associated with certain sociodemographic variables (such as gender, level of studies, and income level). For this purpose, a brief literature review of the economy of happiness is carried out, considering studies regarding the happiness–entrepreneurship connection over the past few years. With data provided by the Sociological Research Center (C.I.S.) barometer survey, we work in two phases: (1) descriptive and inferential on possible associations between the variables, and (2) the calculation of probabilities through logistic regression. The main result shows that the entrepreneurs with employees are happiest. When the null hypothesis is rejected, the categories that seem to show the most happiness are those with higher education and those in the highest income ranges analyzed. Among the main limitations in this work is the scarcity of bibliographic production on the subject matter of this paper. This paper helps to cover part of this gap.
... Nikolova (2018) found that the reason for self-employment affected (improved) physical health, mental health, or both. However, there is some evidence that self-employment leads to an increase in mental health problems but, at the same time, the self-employed do not perceive their jobs as mentally straining (Andersson, 2008). Individuals with certain mental health issues might gravitate towards and thrive in self-employment and entrepreneurship (Wiklund et al., 2018). ...
Article
This paper examines self-employment by generational cohort (millennials, generation X, baby boomers, and matures) in relation to work variables, health variables, work-family variables, and life and job satisfaction. The analyses used data from a national probability sample (n = 738 self-employed), the National Study of the Changing Workforce (NSCW). Significant differences were found between generational groups of self-employed for most of the major study variables (e.g., hours worked, job pressure, work-family conflict). We also found that the study variables (e.g., autonomy, turnover intentions) predicted job satisfaction in self-employment. Limitations, implications, and directions for future research are discussed.
... Many authors include JOBS and Work as measures of well-being (Baron et al., 2016;Hmieleski and Sheppard, 2019;Kibler et al., 2019;Reuschke, 2019); from a job design perspective Dutschke et al. (2019) include self-fulfilment and job-family balance and from entrepreneurship's perspective, it is interesting to measure the individual impact that JOBS has on willingness to take entrepreneurial action, especially in emerging economies. Salary satisfaction is important for entrepreneurs who start a business for a living or for financial success (Andersson, 2008). Nevertheless, in the context of emerging economies where necessity-driven entrepreneurship is more common (Amor os et al., 2021) and the SWB of entrepreneurs is significantly lower than the population average (Larsson and Thulin, 2019), the discussion on the impact of JOBS on entrepreneurial action is still underrepresented in the literature. ...
Article
Full-text available
Purpose This paper aims to assess what happens to a willingness to take entrepreneurial action when people experience low or high subjective well-being (SWB) in 12 emerging economies. Design/methodology/approach The research uses principal component analysis (PCA) and logistic regressions with a data sample from the global entrepreneurship monitor (GEM) for emerging economies. Findings The main results suggest that SWB, measured as satisfaction with life (SWL) and job satisfaction (JOBS), increases the probability of a person becoming an entrepreneur. Social implications The findings of this research suggest that designing and implementing public policies that seek to promote the well-being of individuals might foster their entrepreneurial activities in emerging economies. Originality/value The literature on entrepreneurship, which assesses its relationship with SWB is still scarce. Most of the academic work has been carried out for developed countries, mainly analysing how entrepreneurial activity affects SWB in self-employees or entrepreneurs. This manuscript analyses these elements in the opposite direction, contributing to an underdeveloped discussion on how well-being affects the decision to be an entrepreneur.
... Farklı ülke/ülke gruplarının incelendiği çalışmalarda, Diener ve Seligman (2002) Illinois Üniversitesi'nde 222 öğrenciyle yaptığı çalışmada, en mutlu insanların daha güçlü sosyal ilişkilere sahip, daha romantik, daha az egzersiz yapmaları ve dini faaliyetlere daha az katılım sergiledikleri görülmüştür. Andersson (2008) İsveç'te 1991 ve 2001 de yapılan ankete göre, serbest meslek sahiplerinin ücretli çalışanlardan daha mutlu oldukları, ancak daha fazla sorumluluk sahibi olmalarından dolayı streslerinin fazla olması ve genel sağlıkları diğer çalışanlardan daha kötü olduğu sonuçlarına varılmıştır. Kahneman ve Deaton (2010) Amerika için yaptığı çalışmada yıllık 75.000 ...
... The maximum likelihood estimate of the parameter beta can be obtained using equation [2]. However, compared with the Bayesian estimation method, the maximum likelihood method is not the most effective estimation method. ...
Article
Background: Entrepreneurs not only promote a nation's economic growth but also increase employment. The risk of obesity among entrepreneurs may bring heavy economic burdens not only to the entrepreneurs but also to the national health care system. We aimed to examine the association between entrepreneurship and the risk of obesity. Methods: We utilized data from the 2015 Harmonized China Health and Retirement Longitudinal Survey, including 2,802 individuals aged between 45 and 65 with complete data. This study used BMI (Body Mass Index) (kg/m2) as an indicator of obesity risk. Entrepreneurs were defined as those respondents who run their own businesses as main jobs. We used multivariate OLS regression models and Bayesian Markov Chain Monte Carlo (MCMC) method to examine the link of entrepreneurship and obesity risk. Results: The multivariate OLS regression results showed that entrepreneurship was positively associated with BMI (P<0.01). The Bayesian MCMC results indicated that the posterior mean was (0.597, 90% HPD CI: 0.319, 0.897), demonstrating that entrepreneurship was indeed significantly positively associated with the risk of obesity. Conclusion: Being an entrepreneur is positively associated with the risk of obesity. As obesity can cause diseases such as hypertension, diabetes, coronary heart disease and stroke, the health departments should take necessary health interventions to prevent entrepreneurs from being obese in order to increase their entrepreneurial success.
... They need to assess the potential career options they wish to make and understand which ones they imagine will make them happy and satisfied. Satisfaction with the one's job is extremely important for overall mental and physical health (Andersson, 2008). In sum, outcome expectations, including evaluations of physical rewards, social environments, and feelings of fulfillment are important considerations when selecting realistic and satisfying career paths. ...
Article
Full-text available
After facing a career-ending injury, athletes are often unprepared to find new occupations. With their identities and goals so deeply rooted in athletics from a young age, many athletes have not shown interest in or been educated in other fields of work. Additionally, physical and psychological trauma caused by injury and career-loss can impede the abilities to realistically perceive skills and limitations when considering new career paths. The current article identifies and discusses major issues faced by career-transitioning athletes post-injury and applies two theories, Social Cognitive Career Theory and Cochran’s Narrative Theory, to career counselling methods for this population.
... We test a number of hypotheses to explore the complex relationship between parenthood and life satisfaction, which is conditional on household composition and labour force decisions. Employment status is shown to be a key predictor of life satisfaction (Di tella et al., 2001;Blanchflower and Oswald, 2004;Frijters et al., 2004;Andersson, 2008). However, we suspect a complex interaction between employment and parenthood owing to the demands on working parents in terms of their time and financial resources and hypothesize that being a working parent is negatively associated with parents' life satisfaction (H1). ...
Article
Full-text available
Purpose The purpose of this paper is to explore the impact of having minor children on parents' life satisfaction. Given the demands on working parents in terms of their time and financial resources, the authors suspect a complex interaction between employment and parenthood and explore the effect of parenthood on life satisfaction of mothers and fathers, working parents and those with children of various ages. Design/methodology/approach Data from three rounds of the European Social Survey (R3 2006/07, R5 2010/11 and R8 2016/17) are used to account for Ireland's changing economic landscape. Three ordered probit models are estimated examining parents, and mothers and fathers separately. Findings The findings indicate that any life satisfaction benefits derived from having children appear to be eroded for working parents. There is a negative association between life satisfaction for working mothers with child(ren) aged between 5 and 12 years. Furthermore, when both parents are working, mothers' life satisfaction is also significantly reduced. Practical implications Family policies and supports can shape the effects of parenthood on individual wellbeing and decisions regarding parenthood. Such policies need to be purposeful for working parents of school going children and consistent with economic strategy and labour market goals. Originality/value Much of the existing economic research on individual wellbeing and parenthood are focused on the fertility decision rather than examining the factors affecting the life satisfaction of different cohorts of parents thus leading to more targeted and informed policies. Contemporary weighting methodology is employed.
... (3) High labor demands and under control are related to tensions at work, which could negatively affect the well-being and health of the self-employed. (4) When the activity is generated in an environment of low demand and under control, it is present in a passive work environment, stimulating a decrease in work activities and less ability to solve problems in general [30], which is characterized as routine or boring, and it also leads to health risks [81]. ...
Article
Full-text available
Due to novel coronavirus 2019 (COVID-19), the labor market is going to undergo a profound restructuring. The creation of a new labor paradigm by all stakeholders is essential. This document contributes to the current political and social debates about self-employment, the need for economic growth, and how these labor measures, which are deeply institutionalized, need a change of attitude for an adequate job reconstruction in terms of welfare and sustainability. Currently, policy makers are proposing actions and policies because the new labor paradigm is being designed in the countries of Latin America. This research aims to analyze the JDCS model (Job Demand-Control-Support) and well-being in the self-employed in Ecuador. Unlike previous studies, this research takes a comprehensive approach by considering this theoretical model and the figure of the self-employed in terms of well-being. The logistic model, using cases of more than one thousand workers, generated estimated results that indicate the existence of a significant effect of physical and psychological demands at work on the balance between well-being and the management of angry clients; the speed of execution; and the complexity of the tasks. Regarding labor control, the ability to solve problems and make decisions for the company are detected as influencing factors; finally, social support is another factor influencing global well-being for the self-employed. These results show that with an effective management of the self-employed labor environment, it is possible to achieve an adequate level of workplace satisfaction.
... Looking at the empirical evidence regarding differences in mental health problems between self-employed workers, employed workers and combinators, studies are contradictory. Some studies report no meaningful differences between selfemployed and employed workers when they compared mental health problems on a general level (Prottas and Thompson, 2006;Andersson, 2008;Tuttle and Garr, 2009), or that they are restricted to the beginning of self-employment (Stephan et al., 2020a). However, when focusing on more specific mental health indicators such as depressive symptoms, emotional exhaustion, and sleep disturbances, results were more diverse. ...
Article
Full-text available
Studies investigating differences in mental health problems between self-employed and employed workers have provided contradictory results. Many of the studies utilized scales validated for employed workers, without collecting validity evidence for making comparisons with self-employed. The aim of this study was (1) to collect validity evidence for three different scales assessing depressive symptoms, emotional exhaustion, and sleep disturbances for employed workers, and combinators; and (2) to test if these groups differed. We first conducted approximate measurement invariance analysis and found that all scales were invariant at the scalar level. Self-employed workers had least mental health problems and employed workers had most, but differences were small. Though we found the scales invariant, we do not find them optimal for comparison of means. To be more precise in describing differences between groups, we recommend using clinical cut-offs or scales developed with the specific purpose of assessing mental health problems at work.
... At the same time, the work by Andersson (2008) sheds light on the complex compositional nature of well-being among entrepreneurs. The author uses data from the Swedish Level-of-Living Survey for the years 1991 and 2000 and six indicators of well-being to investigate issues of wellbeing and satisfaction among the self-employed. ...
Article
Full-text available
BACKGROUND: A stringent systematic review of population-based observational studies focusing on the physical health of self-employed individuals as a basis for the development of targeted prevention strategies is lacking. OBJECTIVE: We aimed to systematically evaluate all the studies of good quality that compared the occurrence of chronic physical disorders in self-employed individuals with that of employees. METHODS: We searched three major medical databases (MEDLINE, Web of Science, Embase) following the Cochrane guidelines. The quality of the studies was rated based on the slightly modified validated assessment tool that was developed by Hoy et al. RESULTS: We included 16 population-based studies of good quality, with data from 15,369,964 participants in total. The two longitudinal evaluations of Swedish national registers with the longest follow-up periods showed increased cardiovascular mortality and incidence estimates of cardiovascular disease in self-employed individuals compared with those of white-collar (i.e., nonmanual) employees but decreased risk estimates compared with those of blue-collar (i.e., manual) workers. The results of the shorter cohort studies were heterogeneous. In cross-sectional studies, prevalence estimates for musculoskeletal, respiratory and malignant diseases were higher among self-employed individuals than among employees. CONCLUSION: The long-term cardiovascular disease risk and mortality of self-employed individuals seemed to be higher than those of white-collar employees but lower than those of blue-collar employees. As a basis for targeted prevention strategies, further longitudinal studies in different settings are required to better understand the development of physical health disorders for specific self-employment categories such as sole proprietors, small entrepreneurs, family businesses and others.
Chapter
Numerous studies have examined happiness in Europe, America, and East Asia, but few studies have focused on developing countries. Furthermore, it was found that social capital is an important determinant of happiness in happiness studies. Therefore, this study aims to examine happiness and how it relates to social capital in India. Most studies about India were small-scale and used data limited to demographic conditions (e.g., women, rural, urban, the elderly). The present chapter examines nationwide data and broad demographic conditions as well as social capital, which is important but has not yet been considered in an Indian happiness study. The analysis confirms that our results fit the usual patterns that are found in the happiness literature. However, there are some specific findings in the case of India. For example, there is no significant education–happiness relationship in the estimation. Happiness had a positive and statistically significant correlation with top-level managers, executives, and the self-employed. Social capital had a strong positive correlation with happiness. Our results clearly confirmed the presence of a positive relationship between social capital and happiness. In that sense, social capital was a big predictor of happiness. Finally, we estimated the determinants of social capital.
Article
The purpose of this study is to examine the moderating role of perceived importance of family, friends, leisure time and work on the link between self-employment and life satisfaction. Using data from Wave 7 of the World Value Survey (2017-2020) collected from individuals in 51 countries, the results of Ordered Probit regressions show that a higher level of perceived importance of family, friends and leisure time reduces life satisfaction of self-employed individuals. We also find that the perceived importance of work does not play a moderating role in the relationship between self-employment and life satisfaction. These findings based on the most recent wave of the World Value Survey provide important implications for policymakers and entrepreneurs.
Thesis
Cette thèse s’inscrit au croisement de l’entrepreneuriat de la psychologie cognitive, ainsi que de la psychologie de la santé. Elle contribue au récent courant de la santé des dirigeants de PME qui vise à mieux comprendre l’impact de la fonction entrepreneuriale sur la santé des indépendants. Cette recherche s'intéresse plus particulièrement à la question de leur santé mentale au travers du risque de burnout et du risque suicidaire. Pour cela, elle mobilise une approche cognitive afin de mieux appréhender l’impact du stress entrepreneurial sur la santé mentale des dirigeants de PME, et de voir pourquoi certains entrepreneurs s’épuisent au travail, voire en viennent à se suicider. L’objectif de ce travail est donc de contribuer à une meilleure compréhension de la souffrance psychique patronale. Pour ce faire, cette thèse réalisée sur travaux s’articule autour de quatre contributions académiques et s’appuie sur une méthodologie principalement quantitative. Une étude qualitative est néanmoins menée de manière exploratoire sur la question du suicide, un sujet encore tabou et très peu étudié dans le monde patronal. La recherche est construite en trois étapes, la première s’intéresse à l’étude des spectres émotionnels de deux stresseurs de la fonction entrepreneuriale. La seconde s’intéresse à deux risques en santé mentale subséquents aux deux facteurs de stress de la fonction entrepreneuriale (risques de burnout et suicidaire). Enfin, la troisième et dernière étape vise quant à elle, à étudier la motivation entrepreneuriale comme facteur modérateur des deux risques en santé mentale ciblés. Les résultats montrent une ambiguïté émotionnelle dans la surcharge de travail des dirigeants de PME. La perception de l’événement accompagnant la surcharge va ainsi avoir un rôle déterminant dans l’impact de ce stresseur sur la santé. Aussi, au quotidien, les dirigeants de PME ne sont pas à l’abri d’un risque de burnout. Et selon les contextes, celui-ci peut être modéré par la motivation entrepreneuriale. Enfin, les résultats mettent également en évidence le caractère tragique que peut prendre l’échec entrepreneurial ainsi que l’omniprésence de l’endettement dans le risque suicidaire patronal.
Article
Full-text available
The study investigated the influence of socio-economic factors on rice farmers' subjective well-being in barangay Tabunok, Hilongos, Leyte, Philippines. A face-to-face interview was conducted among 177 randomly selected rice farmers and 50 purposive samples of wage workers for comparison. Descriptive statistics and econometric modeling was used to examine the determinants of happiness in farming. Results show that the farmers’ actual happiness is significantly lower than the expectations. Knowledge, skills, health, and farm owner make them more competent than the other farmers and increase their happiness level. An increase in income leads to an increase in household assets, giving benefits and comfort to the family and directly influencing their well-being. Furthermore, results reveal that farmers’ level of happiness is significantly lower compared to wage workers. Also, farmers are negatively affected by the price increase of agricultural inputs and low harvested output prices in the country.
Article
Full-text available
Rural-to-urban migrant workers are at high risk of health inequalities in cities. Since labor is a central social determinant of health, this paper provided evidence on the health consequences of self-employment among mobile populations in developing countries. The cross-sectional data from the 2017 data of the China Migrants Dynamic Survey (CMDS) and the IV-Oprobit model are used to examine the effects of self-employment on health. The results showed that: (1) Self-employment was positively related to health; (2) among the self-employed, the health effects of opportunity self-employed are larger than those of necessity self-employed; (3) in the subsample analysis, the health effect of self-employment was greater for male and Han nationality migrant workers; (4) self-employment promotes health primarily through reducing manual labor, increasing flexibility time, job stability, financial rewards, and social integration directly or indirectly. Thus, focusing on improving the social security system, granting entrepreneurial subsidies, and optimizing the business environment mean boosting the positive effect of self-employment on economic development.
Preprint
Full-text available
Objective This research aims to discuss the impact of self-employment on health inequality of migrant workers, and explore the mechanism and group differences of the influence of self-employment on health inequality in Chinese migrant workers. Background Self-employment is one of the main types of employment for migrant workers in China, it is important to promote self-employment of migrant workers for Chinese employment-first policy. However, self-employment will affect the life and behavior of migrant workers, as well as health inequality of them. Method This research uses the data from the 2018 China Migrant Workers Dynamic Monitoring Survey, and examines the impact of self-employment on health inequality of migrant workers by using RIF-I-OLS decomposition method. Results We find that self-employment will reduce the health inequality of Chinese migrant workers significantly, especially among migrant workers with low education, low income groups and low social integration. Further analysis shows that self-employment can directly promote the self-rated health of migrant workers. Moreover, it indirectly alleviates the health inequality of migrant workers by mediating effect of improving public welfare accessibility such as health records and health education. Conclusion It is necessary to allow and support migrant workers to engage in self-employment activities, the government should provide public services such as health education, health records and health rights for migrant workers, focus on the employment of migrant workers in city, especially those with low income and low education. Therefore, we believe that measures should be taken to enhance the sense of belonging of migrant workers in city, and promote migrant workers to truly achieve “urbanization of people”. In this manner, reducing the health inequality of migrant workers.
Article
Purpose This study aims to examine the subjective well-being of self-employed persons relative to wage employees in Ghana. Two measures of subjective well-being, comprising life satisfaction and happiness, are considered. Design/methodology/approach The current study focuses on Ghanaian working adults, uses pooled cross-sectional datasets from the 2005 to 2014 World Values Survey (WVS), applies survey weights, estimates ordered probit models and computes marginal effects. Findings The results show that being self-employed is associated with a lower probability of being satisfied with life than being wage employed. The result for happiness is negative but not statistically significant. The perceived low level of life satisfaction among the self-employed in Ghana could explain the rationale behind the desire of some Ghanaians to seek wage employment rather than pursuing self-employment. The results also could partly explain the non-survival of some entrepreneurial firms in Ghana over time. Research limitations/implications Data relating to factors such as business size, location (urban or rural), degree of internationalization (domestic or foreign), number of years of being in self-employment, the number of employees, financial knowledge and behavior and personality traits are unavailable in the WVS for analyses. The present study also uses a pooled cross-sectional dataset for the analyses; thus, causal inferences are not possible. Originality/value The study provides empirical evidence on the relationship between self-employment and subjective well-being in the context of Ghana. The study provides insights into how self-employed Ghanaians perceive well-being relative to wage employees.
Article
In many micro‐data studies, the dependent variable often involves ordered categories and at least one regressor is measured by the interval rather than the precise value. This paper considers partial identification of such an ordered response model when point identification fails. We show the identified set of non‐intercept coefficients is the intersection of those for composite binary response models. We also propose a generalized modified maximum score set (GMMS) estimator. A practical implication of our finding is researchers can shrink the identified set and obtain more precise inference by designing as many as categories of response in a questionnaire during data collection. Another advantage is our theoretical finding can be used to infer the identified region in the multinomial choice model. A Monte Carlo study is conducted to illustrate the main finding in a finite sample. Finally, we apply GMMS estimator to a job satisfaction study using US data with the interval income.
Preprint
Full-text available
Objective: This research aims to discuss the impact of self-employment on health inequality of migrant workers, and explore the mechanism and group differences of the influence of self-employment on health inequality in Chinese migrant workers. Background: Self-employment is one of the main types of employment for migrant workers in China, it is important to promote self-employment of migrant workers for Chinese employment-first policy. However, self-employment will affect the life and behavior of migrant workers, as well as health inequality of them. Method: This research uses the data from the 2018 China Migrant Workers Dynamic Monitoring Survey, and examines the impact of self-employment on health inequality of migrant workers by using RIF-I-OLS decomposition method. Results: We find that self-employment will reduce the health inequality of Chinese migrant workers significantly, especially among migrant workers with low education, low income groups and low social integration. Further analysis shows that self-employment can directly promote the self-rated health of migrant workers. Moreover, it indirectly alleviates the health inequality of migrant workers by mediating effect of improving public welfare accessibility such as health records and health education. Conclusion: It is necessary to allow and support migrant workers to engage in self-employment activities, the government should provide public services such as health education, health records and health rights for migrant workers, focus on the employment of migrant workers in city, especially those with low income and low education. Therefore, we believe that measures should be taken to enhance the sense of belonging of migrant workers in city, and promote migrant workers to truly achieve “urbanization of people”. In this manner, reducing the health inequality of migrant workers.
Article
Full-text available
Background: Women with epilepsy face many physical and psychological problems due to their illness. Epilepsy affects women’s motherhood, parenting role, and quality of life. Thus, in addition to medical interventions, their recovery programs should also cover psychological therapies. Accordingly, this study aimed to examine the effectiveness of humor training on happiness and life satisfaction of female patients with epilepsy. Methods: This study was conducted using a quasi-experimental method with a pretest-posttest design and control group. The research population included all female patients who were members of the Iranian Epilepsy Association, Tehran, in 2020. The subjects were selected using convenience sampling. To this end, 30 women who met the inclusion criteria were randomly assigned into the intervention and control groups. The intervention group attended eight 2-hour humor training sessions and the control group did not receive any training. The Oxford Happiness Questionnaire and the Satisfaction with Life Scale (SWLS) were completed by the subjects before and after the intervention. The collected data were analyzed by one-way Analysis of Covariance (ANCOVA) using SPSS software (version 24). Results: According to the findings, the patients who received humor training reported significantly higher levels of happiness and life satisfaction compared to the control group. There was a significant difference between the pre-test and post-test mean scores of happiness (pre-test: 38.20±3.59; post-test: 45.27±4.18) (F=26.37; P=0.001) and also, there was a significant difference between the mean scores of pre-test and post-test of life satisfaction (pre-test: 13.01±6.16; post-test: 18.67±5.70) (F=30.07; P=0.001) in the intervention group. This difference was not significant in the control group (p>0.05). Conclusion: Humor training increased happiness and life satisfaction among women with epilepsy. This low-cost and easy-to-implement training is recommended to be used by psychologists and psychiatric nurses as a non-pharmacologic alternative along with other treatment options.
Article
Although the phenomenon of hybrid entrepreneurs—individuals who work in paid and self-employment simultaneously—is prevalent, the psychological well-being of hybrid entrepreneurs has not been researched systematically to date. This is unlike research on paid employment and (assumed) full-time entrepreneurship, where psychological well-being has been researched as a key factor. Using data from the United Kingdom Household Longitudinal Survey, we address this void by studying whether hybrid entrepreneurs display distinct psychological well-being patterns (measured via mental strain, job satisfaction, and life satisfaction), utilizing a comparison with full-time paid employed, full-time self-employed and individuals working in two paid jobs. We further examine whether the specific work arrangements of hybrid entrepreneurs shape their well-being. To this end, we study the changes in well-being of hybrid entrepreneurs and other individuals in the comparison groups who switch to other jobs. For this purpose, we employed matching (entropy balancing approach) to account for self-selection effects. Our results suggest that the well-being of hybrid entrepreneurs is indeed distinct and can be explained by both self-selection effects and unique aspects of their work arrangements. Our study is thus the first to deliver evidence showing that hybrid entrepreneurs need to be studied as a separate group in entrepreneurship research concerned with well-being and psychological functioning. Our results have important implications not only for future research but also for practice.
Article
The objective is to contribute to understanding entrepreneurship in ageing societies and to suggest avenues to ensure people in their third age (aged 50+) actively contribute to the supply side of the silver economy. To this end, we apply mixed methods to understand the different effects of motives and attitudes on the well-being of part-time entrepreneurs. The analysis is refined by categorizing those entrepreneurs into third age and prime-age cohorts. The analysis used data from 400 Finnish part-time entrepreneurs. When the stability of the financial situation is controlled for, attitudes to entrepreneurship and self-realization as a motive explain well-being among third-age group. For the younger age group, financial motives were also important in explaining well-being, but recognition and independence motives had a negative effect. Policymakers should consider incentivizing third-age entrepreneurs to continue working also after retirement and aim to foster a climate marked by a positive attitude to third-age entrepreneurship
Article
Full-text available
Despite accumulated evidence on the issue of labor market inequalities on health, the literature to date has failed to consider the changing dynamics of work experiences over a full life course in understanding its association with health. This study takes a holistic approach to understanding labor market trajectories in terms of employment security among wage-earners using a multichannel sequence. Five clusters were found: Secured insider, moderate insiders, vulnerable outsider, precarious workers, and secured labor status but limited income. The findings suggest that labor market inequalities are negatively associated with health outcomes, particularly in the health of the disadvantaged group relative to labor market insiders. Vulnerable outsiders report lower odds of optimal health as well as precarious workers relative to secured insiders. However, the different patterns of association between long-term labor market inequalities and depression were emerged. Future study research could expand to explore the different mechanism of labor market inequalities to self-rated health and depression.
Article
This paper investigates the association of life satisfaction and self-employment experience. Using a large longitudinal dataset from the Understanding Society survey over the period 2009–2019, the paper examines how the allocation of time to wage- or self-employment affects individual life satisfaction. We argue that the typical dichotomous wage-employee/self-employed variable does not fully explain the association over time. Instead, when we measure self-employment experience over time, we identify significant variations. We examine the effects of self-employment experience on overall satisfaction and on a composite life satisfaction metric which combines the satisfaction with job, income, leisure, and health. We find that overall self-employment experience exhibits a positive effect on life satisfaction. However, we identify contrasting effects between the two life-satisfaction metrics in men and women. The results suggest the existence of effects above and beyond work related factors, which affect men and women differently.
Thesis
Full-text available
Research work under the guideship of Dr Pradeepkumar. K and submitted to the University of Kerala in 2019. This work is about entrepreneurship development among differently able people in India.
Article
Full-text available
This paper uses panel data to study human wellbeing. It finds that fixed-effects equations have a similar structure to cross-section equations. This is potentially important, because nearly all work in the field has been forced to rely on cross-section information, and critics have argued that the omission of controls for person-effects makes the literature's conclusions open to doubt. Our paper follows a random sample of 7000 British individuals through each year of the 1990s. The paper calculates the relative importance of economic and non-economic events to psychological health. It puts dollar values --positive or negative --on the 'happiness' value of health, marriage, unemployment, children, and education. Widowhood is the worst life event. The paper also makes a first stab at identifying what lies behind the large fixed-effects in people's subjective well-being.
Article
Full-text available
A general measure of happiness of the Chinese people was developed based on results from a qualitative research done with Chinese people in Taiwan, as well as translating items from a well-established Western instrument. Using systematic random sampling, 191 community residents in Kaohsiung, Taiwan, completed measures of extraversion, neuroticism, social desirability, mental symptoms and happiness. LISREL analysis showed there was a positive direct relation between extraversion and happiness; both a negative direct relation between neuroticism and happiness, and an indirect one through symptoms; both a positive direct relations between social desirability and happiness, and an indirect one through symptoms; whereas there was a negative direct relation between symptoms and happiness.
Article
Full-text available
This paper attempts to test the hypothesis that utility depends on income relative to a ‘comparison’ or reference level. Using data on 5,000 British workers, it provides two findings. First, workers' reported satisfaction levels are shown to be inversely related to their comparison wage rates. Second, holding income constant, satisfaction levels are shown to be strongly declining in the level of education. More generally, the paper tries to help begin the task of constructing an economics of job satisfaction.
Article
Full-text available
The distribution of job satisfaction widened across cohorts of young men in the United States between 1978 and 1988, and between 1978 and 1996, in ways correlated with changing wage inequality. Satisfaction among workers in upper earnings quartiles rose relative to that of workers in the lowest quartile. An identical phenomenon is observed among men in West Germany in response to a sharp increase in the relative earnings of high-wage men in the mid-1990s. Several hypotheses about the determinants of satisfaction are presented and examined using both cross-section data on these cohorts and panel data from the NLSY and the German SOEP. The evidence is most consistent with workers' job satisfaction being especially responsive to surprises in the returns to observable skills, less so to surprises in the returns to unobservables. The effects of earnings shocks on job satisfaction dissipate over time.
Article
Full-text available
This article uses various micro data sets to study entrepreneurship. Consistent with the existence of capital constraints on potential entrepreneurs, the estimates imply that the probability of self-employment depends positively upon whether the individual ever received an inheritance or gift. When directly questioned in interview surveys, potential entrepreneurs say that raising capital is their principal problem. Consistent with the authors' theoretical model's predictions, the self-employed report higher levels of job and life satisfaction than employees. Childhood psychological test scores, however, are not strongly correlated with later self-employment. Copyright 1998 by University of Chicago Press.
Article
Full-text available
A growing literature seeks to explain differences in individuals' self-reported satisfaction with their jobs. The evidence so far has mainly been based on cross-sectional data and when panel data have been used, individual unobserved heterogeneity has been modelled as an ordered probit model with random effects. This article makes use of longitudinal data for Denmark, taken from the waves 1995-1999 of the European Community Household Panel, and estimates fixed effects ordered logit models using the estimation methods proposed by Ferrer-i-Carbonel and Frijters (2004) and Das and van Soest (1999). For comparison and testing purposes a random effects ordered probit is also estimated. Estimations are carried out separately on the samples of men and women for individuals' overall satisfaction with the jobs they hold. We find that using the fixed effects approach (that clearly rejects the random effects specification), considerably reduces the number of key explanatory variables. The impact of central economic factors is the same as in previous studies, though. Moreover, the determinants of job satisfaction differ considerably between the genders, in particular once individual fixed effects are allowed for.
Article
Full-text available
This paper contrasts International Social Science Programme (ISSP) surveys for Hungary, supplemented with related survey data for East Germany, Poland, and Slovenia, with ISSP data for Western countries, to examine the extent to which workers in traditionally communist societies differ in their attitudes toward work conditions, wage inequality, the role of unions and the role of the state in determining labor market outcomes. We find sufficiently marked differences in responses between Hungary and the other previously communist countries and in Western countries to suggest that communism left an identifiable common legacy in the labor area. The citizens of former communist countries evince a greater desire for egalitarianism, are less satisfied with their jobs, and are more supportive of state interventions in the job market and economy than Westerners. These differences suggest that the move to a market economy will be marked by considerable 'social schizophrenia' due to an attitudinal legacy of their communist past.
Article
Full-text available
When studying income differences and income distribution, the self-employed are often excluded from the population studied. There are several good reasons for this, for example that incomes from self-employment are not reported to the same extent as incomes from being an employee. On the other hand it is a problem to exclude the self-employed when studying income differences if the group is large, if the share that is self-employed differs between groups and if there is a difference in the average income from self-employment compared to the average wage income. This is the case when we study incomes for immigrants in Western Europe. The immigrants are overrepresented among the selfemployed, self-employed immigrants are in other sectors than self-employed natives, and the incomes from self-employment differ from the incomes of the wage earners. In this paper we look at the incomes for the self-employed in Denmark and Sweden. To minimize the problems with unreported income we will mainly compare the annual incomes of the selfemployed immigrants and their native counterparts. The measurement error should only create a bias in the estimate of the income difference between the groups if there is a systematic difference in how they report their incomes. Using two cross-sections, one for each country, we find large income differences between natives and immigrants in both countries. Regression estimates show that most characteristics have the same influence in the two countries but also some interesting differences. Using quantile regressions we find that the difference in annual incomes differs depending on where in the income distribution we look. We find that the difference is smaller higher up in the distribution.
Article
Full-text available
This paper seeks to analyse the role of job satisfaction and actual job change behaviour. The analysis is based on the European Community Household Panel (ECHP) data for Danish families 1994-2000. The results show that inclusion of job satisfaction, which is a subjective measure, does improve the ability to predict actual quit behaviour: Low overall job satisfaction significantly increases the probability of quit. Various job satisfaction domains are ranked according to their ability to predict quits. Satisfaction with Type of Work is found to be the most important job characteristic while satisfaction with Job Security is found to be insignificant. These results hold across age, gender and education sub-groups and are opposed to results for UK, where job security is found to be the most important job domain. This discrepancy between UK and Denmark might be due to differences in unemployment insurance benefits and indicates that there are “invisible” benefits inherited in the welfare state insurance system because employees in Denmark don’t worry about job security.
Article
Full-text available
This study of workers' attitudes compares data from International Social Survey Programme (ISSP) surveys for former communist countries in Europe with ISSP data for Western countries over the period 1987-93, which covers the beginning of the transition to a market economy for the former communist countries. Consistent with their hypothesis that communist-run economies left an attitudinal "legacy," the authors find that the citizens of former communist countries evinced a greater desire for egalitarianism, less satisfaction with their jobs, and more support for strong trade unions and state intervention in the job market and economy than did Westerners. Over the course of the period studied, however, residents of the former communist European countries perceived sizable increases in occupational earnings differentials, and they adjusted their views of the differentials that "ought to" exist in their economies in the direction of greater inequality. (Abstract courtesy JSTOR.)
Article
Full-text available
Evidence shows that real-effort investments can affect bilateral bargaining outcomes. This paper investigates whether similar investments can inhibit equilibrium convergence of experimental markets. In one treatment, sellers’ relative effort affects the allocation of production costs, but a random productivity shock ensures that the allocation is not necessarily equitable. In another treatment, sellers’ effort increases the buyers’ valuation of a good. We find that effort investments have a short-lived impact on trading behavior when sellers’ effort benefits buyers, but no effect when effort determines cost allocation. Efficiency rates are high and do not differ across treatments.
Article
Full-text available
This paper sketches theoretical reasons why health may alter household savings and provides evidence on the empirical impact of health shocks on household wealth. The impacts on saving are quantitatively large and only partly explained by increased out-of-pocket medical expenses. Other contributing factors include reduced earnings and a revision in life expectancy. The author also delves into reasons why economic status, access to medical care, and deleterious personal behaviors have been rejected as insufficient explanations. New theories emphasize long-term impacts of early childhood or even intrauterine factors, cumulative effects of prolonged exposures to stress, or reactions of macrosocietal factors like rising levels of income inequality.
Article
Full-text available
The research agendas of psychologists and economists now have several overlaps, with behavioural economics providing theoretical and experimental study of the relationship between behaviour and choice, and hedonic psychology discussing appropriate measures of outcomes of choice in terms of overall utility or life satisfaction. Here we model the relationship between values (understood as principles guiding behaviour), choices and their final outcomes in terms of life satisfaction, and use data from the BHPS to assess whether our ideas on what is important in life (individual values) are broadly connected to what we experience as important in our lives (life satisfaction).
Article
Several studies have found that non-Western immigrants are overrepresented among the self-employed in Sweden, but we do not know much about the way self-employed immigrants perform economically compared to their native counterparts. This study analyses the incomes of self-employed natives and immigrants in Sweden and, in particular, investigates whether there are differences in income between the two groups. A unique dataset that includes all individuals in Sweden who have been continuously self-employed in the period 1998-2002 has been used. The dependent variable is average annual income during this period. Income regressions are estimated, using both OLS and quantile regressions. The large population allows us to divide it into subgroups: native Swedes, second-generation immigrants, and seven groups of foreign-born immigrants. The OLS regression shows that immigrants from non- Western countries have incomes that are between 38 and 45 per cent lower than natives, even allowing for differences in individual characteristics, industry, and the start-up year of the firm. Immigrants from the Nordic countries earn on average 9 per cent lower incomes, while Western immigrants receive on average 17 per cent lower incomes than natives. The quantile regressions show that the difference between natives and all groups of immigrants, with the exception of immigrants from South America, declines over the income distribution, i.e. the difference is significantly smaller at the top of the income distribution compared to the difference at the bottom.
Article
This work explores self-employment in Britain across recent years and examines changes in the flows of individuals into and out of self-employment. Panel data suggest that the large increase in self-employment in the 1980s was due to increases in the inflow rate, while an increase in the outflow rate in the early 1990s has stopped this trend. Gender, parents occupation, assets and considering the work itself, the use of initiative or hours of work to be the most important aspect of a job emerge as key determinants of self-employment entry. Gender, age, occupation and elapsed duration in self-employment emerge as important determinants of selfemployment exit. Our analysis reveals that, all else equal, the self-employed report higher levels of job satisfaction with pay and with the work itself than employees, but lower levels of satisfaction with job security. Acknowledgements: Thanks to Danny Blanchflower for helpful comments. The support of the Economic and Social Research Council (UK), and the University of Essex is gratefully In Britain, the 1980s is often described as the decade of the entrepreneur. The number of selfemployed individuals in Britain almost doubled from 1.8 million (or 7.3 % of those in work) in 1979
Article
Summary Self-employed people are substantially more satisfied with their work than the employed. We document this relationship for a large number of countries and investigate why the self-employed are hap- pier with their jobs. The results indicate that differences in material outcomes, like higher pay or a lower number of working hours, as well as potential differences in personality cannot account for the ob- served job satisfaction differences. Rather, the higher job satisfaction among the self-employed can be directly attributed to the greater in- dependence and autonomy they enjoy. "Being your own boss" seems to provide non-pecuniary benefits from work that point to the exis- tence of "procedural utility": autonomy is valued beyond outcomes as a good decision-making procedure. Implications of the results for economic theory and economic policy are discussed.
Article
Self-employed individuals have arguably greater opportunities than wage earners to underreport their incomes. This article uses recent Swedish income and expenditure data to examine the extent of underreporting of income among self-employed individuals. A key hypothesis is that underreporting of incomes among the self-employed would be visible in the data as 'excess food consumption', for a given level of observed income. Our results confirm the underreporting hypothesis. In particular, we estimate that households with at least one self-employed member underreport their total incomes by around 30%. Under-reporting appears to be much more prevalent among self-employed people with unincorporated businesses as among those with incorporated businesses.
Article
The paper examines the role and influence of self-employment across the OECD. The overall trend in self-employment, at the economy level in the years since 1966, has been down in most countries. The main exceptions to this are Portugal, New Zealand and the United Kingdom where the trend has been upward. For most countries there is a negative relationship between the self-employment rate and the unemployment rate. The probability of being self-employed is higher among men than women and rises with age. The least educated have the highest probability of being self-employed, however, evidence is found that the most highly educated also have relatively high probabilities. The self-employed have higher levels of job satisfaction than employees. I could find no evidence that increases in the self-employment rate increased the real growth rate of the economy; in fact there was even evidence of the opposite. The self-employed are less willing to move from their neighborhoods, towns and regions than are employees, presumably because of the pull of their customers. I developed a flexibility index based on information provided by individuals in 1995. According to this index the US economy was the most flexible, followed by Canada, Germany and the Netherlands. Latvia, Russia and Hungary were found to be the least flexible countries. Of the OECD countries examined, Austria and Ireland were ranked lowest.
Article
Despite increasing interest in the psychology of happiness, there have been fewcross-cultural studies on personality correlates of happiness. This study examines personality (EPQ) and demographic correlates of happiness and mental health in Britain, China (Hong Kong)and Japan among comparable groups. Compared to similar groups in China and Japan, Britishparticipants reported higher levels of happiness, mental health and extraversion. However, therewere fewer than chance sex differences on the various measures. Correlational analysis in all three countries showed extraversion to be a major correlate of happiness (r=0.50), whileneuroticism was shown to be a correlate of mental health (r=0.65). Regressionsperformed separately for happiness and mental health showed a remarkably similar pattern acrossthe three cultures, with personality accounting for around 20% of the common variance.
Article
We test whether mortality is related to individual income, mean community income, and community income inequality, controlling for initial health status and personal characteristics. The analysis is based on a random sample from the adult Swedish population of more than 40,000 individuals who were followed up for 10–17 years. We find that mortality decreases significantly as individual income increases. For mean community income and community income inequality we cannot, however, reject the null hypothesis of no effect on mortality. This result is stable with respect to a number of measurement and specification issues explored in an extensive sensitivity analysis.
Article
Microdata are used in this paper to analyze the effects of unemployment on mental health. The analysis is done in two steps. First, cross-section data of labor force participants are analyzed. It appears that the unemployed have worse mental health than the employed. Next, panel data are used to control for "fixed" effects, that is, unobserved omitted variables that are constant over time. The model is also specified to allow both the occurrence of and duration of unemployment to affect mental health. Then we cannot reject the hypothesis that there are no effects of unemployment on mental health. However, some sensitivity tests indicate that the precision of our estimates is rather low.
Article
This paper presents a survey of the methods used in the estimation of limited dependent variable models with panel data. It first reviews some issues in the analysis of panel data when the dependent variables are continuous. The problems of fixed effects vs. random effects and serious correlation vs. state dependence are discussed with reference to continuous data. The paper then discusses these problems with reference to the panel logit, panel probit, and panel tobit models. The paper presents a comparative assessment of these models.
Article
This paper provides a systematic empirical analysis of the effect of union membership on job satisfaction and wages, and shows how the interaction between these effects leads to empirically observable relations between unionization and individual quit probabilities. Using the National Longitudinal Survey of Mature Men, several empirical results were obtained. First, union members, on average, report lower levels of job satisfaction. Interestingly, unionization causes greater dissatisfaction at higher tenure levels. These findings are attributed to both the politicization of the unionized labor force and the fact that union members face flatter earnings profiles. The importance of the latter effect is reflected by the empirical fact that unions have a strong negative effect on quit probabilities at low levels of tenure, but the effect diminishes (absolutely) as tenure increases.
Article
This paper summarizes the associations between long workhours and health, with special attention for the physiological recovery and behavioral life-style mechanisms that may explain the relationship. The evidence for these mechanisms has not been systematically reviewed earlier. A total of 27 recent empirical studies met the selection criteria. They showed that long workhours are associated with adverse health as measured by several indicators (cardiovascular disease, diabetes, disability retirement, subjectively reported physical health, subjective fatigue). Furthermore, some evidence exists for an association between long workhours and physiological changes (cardiovascular and immunologic parameters) and changes in health-related behavior (reduced sleep hours). Support for the physiological recovery mechanism seems stronger than support for the behavioral life-style mechanism. However, the evidence is inconclusive because many studies did not control for potential confounders. Due to the gaps in the current evidence and the methodological shortcomings of the studies in the review, further research is needed.
Article
I present information on self-employment from seventy countries. Self-employment rates are generally down across the OECD. The main exceptions are the UK, and New Zealand. The probability of being self-employed across the OECD is higher for men and for older workers compared with younger workers. In Europe the probabilities are lower the more educated an individual is, while the opposite is true in the US. Some groups of immigrants have higher rates of self-employment than the indigenous population, others do not. Capital constraints appear to bind especially tightly in the US for firms owned by minorities and women: the low rates of self-employment of blacks and Hispanics in the US appears in part to be driven by liquidity constraints. There is evidence that liquidity constraints bite in other countries including the UK, Finland, Australia, Canada and Sweden. It does seem likely that people have an unrealistically rosy view of what it is like to be running their own business rather than staying with the comparative security of being an employee. A surprisingly high proportion of employees say they would prefer to be self-employed. Despite the fact that very high proportions of employees say they would like to set up their own business the reality is something else. The evidence presented her suggests that people may well be able to judge what is in their own best interests - that is why they remain as employees. The self-employed work under a lot of pressure, report that they find their work stressful and that they come home from work exhausted. Further, they report being constantly under strain, that they lose sleep over worry and place more weight on work than they do on leisure. However, they are especially likely to say they have control over their lives as well as being highly satisfied with their lives.
Article
This paper investigates the relationship between happiness (utility) and a host of socio-economic variables. The data set consists of a random sample of over 5,000 individuals from the Swedish adult population. Happiness is measured by a three-point categorical measure of overall happiness (not happy, happy sometimes, happy most of the time), and an ordered probit model is used to econometrically estimate the happiness equation. The results are consistent with the theoretical predictions and show that happiness increases with income and education and decreases with unemployment, urbanisation, being single, and male gender. The relationship between age and happiness is U-shaped, with happiness being lowest in the age-group 45-64.
Article
This paper tests for the importance of nonpecuniary costs of unemployment using a longitudinal data-set on life-satisfaction of working-age men in Germany. The authors show that unemployment has a large detrimental effect on satisfaction after individual specific fixed effects are controlled for. The nonpecuniary effect is much larger than the effect that stems from the associated loss of income. Copyright 1998 by The London School of Economics and Political Science
Article
This paper uses labour market spell data from the first seven waves of the British Household Panel Survey (BHPS) to model separations and quits. Three main results emerge. First, job satisfaction data are powerful predictors of both separations and quits, even controlling for wages, hours and standard demographic and job variables. Second, the comparison of the power of seven domain job satisfaction measures in a quit equation yields a ranking of job characteristics: job security and pay are the most important, followed by use of initiative, the work itself, and hours of work. This ranking differs markedly across different labour market groups. Last, union job dissatisfaction seems to be real: dissatisfied union members are just as likely to quit as are dissatisfied union non-members. However, union “free-riders” (non-union members at establishments with union recognition) do seem to behave differently from workers at establishments where unions are not recognised.
Article
If a nation's economic performance improves, how much extra happiness does that buy its citizens? Most public debate assume -without real evidence- that the answer is a lot. This paper examines the question by using information on the well-being in Western countries.
Article
Over the past few years, there has been a steadily increasing interest on the part of economists in happiness research. We argue that reported subjective well-being is a satisfactory empirical approximation to individual utility and that happiness research is able to contribute important insights for economics. We report how the economic variables income, unemployment and inflation affect happiness as well as how institutional factors, in particular the type of democracy and the extent of government decentralization, systematically influence how satisfied individuals are with their life. We discuss some of the consequences for economic policy and for economic theory.
Article
One can be independent, or one can be subject to decisions made by others. This paper argues that this difference, embodied in the institutional distinction between the decision-making procedures 'market' and 'hierarchy', affects individual wellbeing beyond outcomes. Taking self-employment as an important case of independence, it is shown that the self-employed derive higher satisfaction from work than those employed in organizations, irrespective of income gained or hours worked. This is evidence for procedural utility: people value not only outcomes, but also the processes leading to outcomes. Copyright (c) The London School of Economics and Political Science 2007.
Article
In data with a group structure, incidental parameters are included to control for missing variables. Applications include longitudinal data and sibling data. In general, the joint maximum likelihood estimator of the structural parameters is not consistent as the number of groups increases, with a fixed number of observations per group. Instead a conditional likelihood function is maximized, conditional on sufficient statistics for the incidental parameters. In the logit case, a standard conditional logit program can be used. Another solution is a random effects model, in which the distribution of the incidental parameters may depend upon the exogenous variables.
Article
The purpose of this paper is to examine these concerns and evaluate the use of job satisfaction (and other subjective variables) in labor market analysis. The main theme is that, while there are good reasons to treat subjective variables gingerly, the answers to questions about how people feel toward their job are not meaningless but rather convey useful information about economic life that should not be ignored. The paper begins with a brief description of the satisfaction questions on major worker surveys, and then considers the use of satisfaction as an independent and as a dependent variable. Satisfaction is shown to be a major determinant of labor market mobility, in part it is argued because it reflects aspects of the work place not captured by standard objective variable8. Satisfaction is also found to depend anomolously on some economic variables (such as unionism) in ways that provide insight into how those factors affect people.
Article
The standard of living in the industrialized nations has been steadily increasing over the last few decades. Yet some observers wonder whether we are really getting any happier. This paper addresses that question by examining well-being data on 100,000 randomly sampled Americans and Britons from the early 1970s to the late 1990s. Reported levels of happiness have declined over the period in the United States. Life satisfaction has been approximately flat through time in Great Britain. Counter to the general US trend, the happiness of blacks in that nation has risen. The black-white happiness differential has diminished. The happiness of American men has grown. Despite legislation on gender discrimination, the well-being of women has fallen. Wellbeing equations have a stable structure: the British equations are almost identical to the US ones. Money does buy happiness. People care also about relative income. The paper calculates the dollar values of events like unemployment and divorce. They are large. A lasting marriage (compared to widow-hood as a `natural' experiment), for example, is calculated to be worth $100,000 a year. 1 Well-Being Over Time in Britain and the USA David G. Blanchflower and Andrew J. Oswald "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness." U.S. Declaration of Independence, July 4, 1776. 1.
Pace of Life and Enjoyment of Life. Paper Presented at the Conference The Paradoxes of Happiness in Economics
  • M Garhammer
Garhammer, M., 2003. Pace of Life and Enjoyment of Life. Paper Presented at the Conference The Paradoxes of Happiness in Economics. University of Milano-Bicocca.
Economic aspects of job satisfaction Ashenfelter, Essays in Labor Market Analysis Long work hours and health
  • D Hamermesh
Hamermesh, D., 1977. Economic aspects of job satisfaction. In: Orely, C., Oates, W.E. (Eds.), Ashenfelter, Essays in Labor Market Analysis. Wiley, New York. Van der Hulst, M., 2003. Long work hours and health. Scandinavian Journal of Work Environment and Health 29, 171–188.
Ett fö eller fö artionde? Välfä mellan 1981 och 1991
  • J Fritzell
  • O Lundberg
Fritzell, J., Lundberg, O., 1993. Ett fö eller fö artionde? Välfä mellan 1981 och 1991. Institutet fö Social Forskning, Stockholm.
166)* -0.41 (0.314) Self-employed -0.34 (0.255) 0.46 (0.389) Time dummy(=1 for 2000) -0.34 (0.100)*** - Self-employed
  • White-Collar
White-collar, high level -0.30 (0.166)* -0.41 (0.314) Self-employed -0.34 (0.255) 0.46 (0.389) Time dummy(=1 for 2000) -0.34 (0.100)*** - Self-employed in 2000 0.63 (0.317)** 0.59 (0.295)** Age -0.02 (0.032) -0.07 (0.045)
Well-Being in Panels. Working Paper at the Department of Economics
  • A Clark
  • A Oswald
Clark Andrew. E and Oswald Andrew J (2002). " Well-being in panels ". Working Paper at the department of Economics, University of Warwick, UK.
Tid och ork: Arbetstiden – en hälsofråga? " , Prevent, arbetsmiljö I samverkan SAF
  • M Miller
  • T Åkerstedt
Miller, M and Åkerstedt T (1998). " Tid och ork: Arbetstiden – en hälsofråga? ", Prevent, arbetsmiljö I samverkan SAF, LO and PTK.
Being independent raises happiness at work
  • Benz