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Self-employment and job satisfaction: an empirical analysis

Author

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  • Gema Álvarez
  • Ana I. Sinde-Cantorna
Abstract
Purpose - – The purpose of this paper is to test whether the usual positive effect of self-employment on job satisfaction remains once the greater autonomy and flexibility afforded by self-employment have been factored in, as well as the existence of differences in unobserved characteristics across individuals. Design/methodology/approach - – It may be thought that the probability of being self-employed and the declared job satisfaction are not independent from each other due to differences in unobserved characteristics – as psychological or personality traits – across individuals. Therefore, self-employment should be treated as an endogenous variable when it is introduced as an explanatory variable in a job satisfaction equation. Given this, the paper proposes the estimation of a treatment effect model in which self-employment and job satisfaction equations are estimated jointly. Findings - – The results suggest that the usual positive effect of self-employment on job satisfaction is due to the greater work autonomy afforded by self-employment, and not to the greater willingness of the self-employed to report higher levels of satisfaction. Thus, the paper finds that once flexibility and autonomy are considered, the usual positive effect of self-employment on job satisfaction disappears and becomes negative. Research limitations/implications - – It would be useful further empirical analysis using other data, especially panel data, to test the robustness of the results. Originality/value - – The paper proposes an alternative way to analyse the relation between self-employment and job satisfaction by taking into account both the greater autonomy and flexibility afforded by self-employment, as well as psychological or personality traits.

Suggested Citation

  • Gema Álvarez & Ana I. Sinde-Cantorna, 2014. "Self-employment and job satisfaction: an empirical analysis," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(5), pages 688-702, July.
    • Handle: RePEc:eme:ijmpps:v:35:y:2014:i:5:p:688-702
    DOI: 10.1108/IJM-11-2012-0169
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    Citations

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    Cited by:

    1. FitzRoy, Felix & Jin, Jim, 2017. "Basic Income and a Public Job Offer: Complementary Policies to Reduce Poverty and Unemployment," IZA Policy Papers 133, Institute of Labor Economics (IZA).
    2. Shir, Nadav & Nikolaev, Boris N. & Wincent, Joakim, 2019. "Entrepreneurship and well-being: The role of psychological autonomy, competence, and relatedness," Journal of Business Venturing, Elsevier, vol. 34(5), pages 1-1.
    3. Binder, Martin & Blankenberg, Ann-Kathrin, 2021. "Self-employment and subjective well-being," University of Göttingen Working Papers in Economics 411, University of Goettingen, Department of Economics.
    4. Mariana Santis & Marcelo Florensa & María Cecilia Gáname & Pedro Esteban Moncarz, 2021. "Job Satisfaction of Recent University Graduates in Economics Sciences: The Role of the Match Between Formal Education and Job Requirements," Journal of Happiness Studies, Springer, vol. 22(7), pages 3157-3197, October.
    5. Cristian Ortiz & Aldo Salinas & Johanna Alvarado & Viviana Huachizaca, 2024. "How Much are you Willing to Accept for Being Away From Home? Internal Migration and Job Satisfaction Among Formal-Informal Ecuadorian Workers," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 19(4), pages 1829-1857, August.
    6. Cheryl Carleton & Mary T. Kelly, 2022. "Happy at Work - Possible at Any Age?," Villanova School of Business Department of Economics and Statistics Working Paper Series 51, Villanova School of Business Department of Economics and Statistics.
    7. Cheryl Carleton & Mary Kelly, 2019. "Alternative Work Arrangements and Job Satisfaction," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 47(3), pages 293-309, September.
    8. Pascale Peters & Rob Blomme & Ward Jager & Beatrice Heijden, 2020. "The impact of work-related values and work control on the career satisfaction of female freelancers," Small Business Economics, Springer, vol. 55(2), pages 493-506, August.
    9. Raquel Justo & Emilio Congregado & Concepción Román, 2021. "Becoming self-employed from inactivity: an in-depth analysis of satisfaction," Small Business Economics, Springer, vol. 56(1), pages 145-187, January.
    10. Horemans, Jeroen & Marx, Ive, 2017. "Poverty and Material Deprivation among the Self-Employed in Europe: An Exploration of a Relatively Uncharted Landscape," IZA Discussion Papers 11007, Institute of Labor Economics (IZA).

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