A new GLO Discussion Paper discusses evidence and explanations why self-employment is positively associated with job satisfaction.
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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
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.
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