A new GLO Discussion Paper discusses evidence and explanations why self-employment is positively associated with job satisfaction.
The Global Labor Organization (GLO) is an independent, non-partisan and non-governmental organization that functions as an international network and virtual platform to stimulate global research, debate and collaboration.
GLO Discussion Paper No. 744, 2021
Self-employment and Subjective Well-Being – Download PDF
by Binder, Martin & Blankenberg, Ann-Kathrin
GLO Fellows Martin Binder & Ann-Kathrin Blankenberg
Ann-Kathrin Blankenberg 
Martin Binder
Author Abstract: Self-employment contributes to employment growth and innovativeness and many individuals want to become self-employed due to the autonomy and exibility it brings. Using “subjective well-being” as a broad summary measure that evaluates an individual’s experience of being self-employed, the chapter discusses evidence and explanations why self-employment is positively associated with job satisfaction, even though the self-employed often earn less than their employed peers, work longer hours and experience more stress and higher job demands. Despite being more satisfied with their jobs, the self-employed do not necessarily enjoy higher overall life satisfaction, which is due to heterogeneity of types of self-employment, as well as motivational factors, work characteristics and institutional setups across countries.
GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers). Complete list of all GLO DPs – downloadable for free.
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