On the Misery of Losing Self-Employment

Clemens Hetschko

No 699, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: 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.

Keywords: life satisfaction; self-employment; probability of losing work; Unemployment; SOEP (search for similar items in EconPapers)
JEL-codes: I31 J24 J65 L26 (search for similar items in EconPapers)
Pages: 30 p.
Date: 2014
New Economics Papers: this item is included in nep-ent, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://www.diw.de/documents/publikationen/73/diw_01.c.486480.de/diw_sp0699.pdf (application/pdf)

Related works:
Journal Article: On the misery of losing self-employment (2016)
Working Paper: On the misery of losing self-employment (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp699

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