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The Role of Job Satisfaction in Transitions into Self–Employment

Author

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  • Giuliano Guerra
  • Roberto Patuelli
Abstract
Self–employment is often seen as an attractive alternative to wage employment, despite lower welfare protection, higher risks, and more required effort than in the latter. It is then important to investigate why individuals choose self–employment. In addition to potential earnings, other factors may be considered, including displacement, uncertainty, unemployment risk, and dissatisfaction. Building on a job quits model, we propose an empirical representation of transitions to self–employment, which includes subjective evaluations of pecuniary and nonpecuniary satisfaction on the previous job. Additionally, we focus on the dynamics of job satisfaction, highlighting the role played by shocks in subjective evaluations.

Suggested Citation

  • Giuliano Guerra & Roberto Patuelli, 2016. "The Role of Job Satisfaction in Transitions into Self–Employment," Entrepreneurship Theory and Practice, , vol. 40(3), pages 543-571, May.
  • Handle: RePEc:sae:entthe:v:40:y:2016:i:3:p:543-571
    DOI: 10.1111/etap.12133
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    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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