Arbeitspapier

On the misery of losing self-employment

German Socio-Economic Panel data is used to show that the decrease in life satisfaction caused by an increase in the probability of losing work is higher when self-employed than when paid employed. Further estimations reveal that becoming unemployed reduces self-employed workers' satisfaction considerably more than salaried workers' satisfaction. These results indicate that losing self-employment is an even more harmful life event than losing dependent employment. Monetary and non-monetary reasons seem to account for the difference between the two types of work. Moreover, it originates from the process of losing self-employment and the consequences of unemployment rather than from advantages of self-employment.

Language: Englisch

Bibliographic citation: Series: SOEPpapers on Multidisciplinary Panel Data Research ; No. 699

Classification: Wirtschaft
General Welfare; Well-Being
Human Capital; Skills; Occupational Choice; Labor Productivity
Unemployment Insurance; Severance Pay; Plant Closings
Entrepreneurship

Subject: life satisfaction
self-employment
probability of losing work
Unemployment
SOEP

Event: Geistige Schöpfung

(who): Hetschko, Clemens

Event: Veröffentlichung

(who): Deutsches Institut für Wirtschaftsforschung (DIW)

(where): Berlin

(when): 2014

Handle: http://hdl.handle.net/10419/103400

Last update: 10.03.2025, 11:44 AM CET

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Object type

Arbeitspapier

Associated

Hetschko, Clemens
Deutsches Institut für Wirtschaftsforschung (DIW)

Time of origin

2014

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Arbeitspapier