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Self-employment and mental health

Vicki L. Bogan (), Angela R. Fertig and David Just
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Vicki L. Bogan: Cornell University
Angela R. Fertig: University of Minnesota

Review of Economics of the Household, 2022, vol. 20, issue 3, No 8, 855-886

Abstract: Abstract This paper analyzes the role of mental health in self-employment decisions. We find evidence of a relationship between psychological distress and self-employment for men that depends on type of self-employment and severity of psychological distress. Specifically, there is suggestive evidence of a causal link from moderate psychological distress to self-employment in an unincorporated business as a main job for men. Additionally, we find evidence that long term mental illness can significantly increase the probability of self-employment in an unincorporated business for both men and women. Our results suggest that individual difficulty in wage-and-salary employment is the likely mechanism for this connection.

Keywords: Entrepreneurship; Self-employment; Occupational choice; Mental health (search for similar items in EconPapers)
JEL-codes: I10 J23 J24 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s11150-021-09578-3

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