The perceived well-being and health costs of exiting self-employment
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 estimation. Our findings suggest that while transitioning from se...
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| Sprache: | English |
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Leibniz Institute for Eastern and Southeastern European Studies
May 2020
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| Schriftenreihe: | IOS working papers
No. 386 |
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| 245 | 1 | 0 | |a The perceived well-being and health costs of exiting self-employment |c Milena Nikolova, Boris Nikolaev, and Olga Popova |
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| 520 | 3 | |a 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 estimation. Our findings suggest that while transitioning from self-employment to salaried employment (i.e., a voluntary selfemployment exit) 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 (i.e., switching from salaried employment to unemployment). 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 largely psychological. Moreover, former business owners fail to adapt to an involuntary self-employment exit even two or more years after this traumatic event. Our findings imply that policies encouraging entrepreneurship should also carefully consider the costs of business failure. | |
| 700 | 1 | |a Nikolaev, Boris |e Verfasser |0 (DE-588)1063883520 |4 aut | |
| 700 | 1 | |a Popova, Olga |e Verfasser |0 (DE-588)143212591 |4 aut | |
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| indexdate | 2024-12-24T08:12:04Z |
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| spelling | Nikolova, Milena Verfasser (DE-588)1156629292 aut The perceived well-being and health costs of exiting self-employment Milena Nikolova, Boris Nikolaev, and Olga Popova Regensburg Leibniz Institute for Eastern and Southeastern European Studies May 2020 1 Online-Ressource (v, 40 Seiten) Diagramme txt rdacontent c rdamedia cr rdacarrier IOS working papers No. 386 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 estimation. Our findings suggest that while transitioning from self-employment to salaried employment (i.e., a voluntary selfemployment exit) 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 (i.e., switching from salaried employment to unemployment). 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 largely psychological. Moreover, former business owners fail to adapt to an involuntary self-employment exit even two or more years after this traumatic event. Our findings imply that policies encouraging entrepreneurship should also carefully consider the costs of business failure. Nikolaev, Boris Verfasser (DE-588)1063883520 aut Popova, Olga Verfasser (DE-588)143212591 aut IOS working papers No. 386 (DE-604)BV040033175 386 http://www.dokumente.ios-regensburg.de/publikationen/wp/wp_386.pdf Verlag kostenfrei |
| spellingShingle | Nikolova, Milena Nikolaev, Boris Popova, Olga The perceived well-being and health costs of exiting self-employment IOS working papers |
| title | The perceived well-being and health costs of exiting self-employment |
| title_auth | The perceived well-being and health costs of exiting self-employment |
| title_exact_search | The perceived well-being and health costs of exiting self-employment |
| title_full | The perceived well-being and health costs of exiting self-employment Milena Nikolova, Boris Nikolaev, and Olga Popova |
| title_fullStr | The perceived well-being and health costs of exiting self-employment Milena Nikolova, Boris Nikolaev, and Olga Popova |
| title_full_unstemmed | The perceived well-being and health costs of exiting self-employment Milena Nikolova, Boris Nikolaev, and Olga Popova |
| title_short | The perceived well-being and health costs of exiting self-employment |
| title_sort | the perceived well being and health costs of exiting self employment |
| url | http://www.dokumente.ios-regensburg.de/publikationen/wp/wp_386.pdf |
| volume_link | (DE-604)BV040033175 |
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