Please use this identifier to cite or link to this item:
http://elar.urfu.ru/handle/10995/111588
Title: | The Perceived Well-being and Health Costs of Exiting Self-employment |
Authors: | Nikolova, M. Nikolaev, B. Popova, O. |
Issue Date: | 2021 |
Publisher: | Springer Springer Science and Business Media LLC |
Citation: | Nikolova M. The Perceived Well-being and Health Costs of Exiting Self-employment / M. Nikolova, B. Nikolaev, O. Popova // Small Business Economics. — 2021. — Vol. 57. — Iss. 4. — P. 1819-1836. |
Abstract: | We explore how involuntary and voluntary exits from self-employment affect life and health satisfaction. To that end, we use rich longitudinal data from the German Socio-Economic Panel from 1985 to 2017 and a difference-in-differences estimator. We find that while transitioning from self-employment to salaried employment brings small improvements in health and life satisfaction, the negative psychological costs of business failure (i.e., switching from self-employment to unemployment) are substantial and exceed the costs of involuntarily losing a salaried job. Meanwhile, leaving self-employment has no consequences for self-reported physical health and behaviors such as smoking and drinking, implying that the costs of losing self-employment are mainly psychological. Moreover, former business owners fail to adapt to an involuntary self-employment exit even 2 or more years after this traumatic event. Our findings imply that policies encouraging entrepreneurship should also carefully consider the nonmonetary implications of business failure. © 2020, The Author(s). |
Keywords: | E24 ENTREPRENEURSHIP HEALTH I10 I31 J28 JOB SWITCHES L26 SELF-EMPLOYMENT UNEMPLOYMENT WELL-BEING |
URI: | http://elar.urfu.ru/handle/10995/111588 |
Access: | info:eu-repo/semantics/openAccess |
SCOPUS ID: | 85087512650 |
WOS ID: | 000545296500001 |
PURE ID: | 29073862 |
ISSN: | 0921-898X |
DOI: | 10.1007/s11187-020-00374-4 |
metadata.dc.description.sponsorship: | Popova acknowledges the support from Russian Science Foundation grant no. 19-18-00262. |
RSCF project card: | 19-18-00262 |
Appears in Collections: | Научные публикации ученых УрФУ, проиндексированные в SCOPUS и WoS CC |
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