A fresh look at self-employment, stress and health: accounting for self-selection, time and gender. Issue 5 (20th May 2020)

• Record Type: Journal Article
• Authors: Stephan, Ute; Li, Jun; Qu, Jingjing
• Is Part Of: International journal of entrepreneurial behaviour & research. Volume 26:Issue 5(2020)
• Page Start: 1133
• Page End: 1177
• Publication Date: 2020-05-20
• Subjects: Work-related stress -- Mental health -- Physical health -- Propensity score matching -- Time -- Understanding society -- United Kingdom -- Strain; Entrepreneurship -- Periodicals; Small business -- Periodicals; 338.04
• DOI: 10.1108/IJEBR-06-2019-0362
• Languages: English
• ISSNs: 1355-2554

Abstract

Abstract : Purpose: Past research on self-employment and health yielded conflicting findings. Integrating predictions from the Stressor-Strain Outcome model, research on challenge stressors and allostatic load, we predict that physical and mental health are affected by self-employment in distinct ways which play out over different time horizons. We also test whether the health impacts of self-employment are due to enhanced stress (work-related strain) and differ for man and women. Design/methodology/approach: We apply non-parametric propensity score matching in combination with a difference-in-difference approach and longitudinal cohort data to examine self-selection and the causal relationship between self-employment and health. We focus on those that transit into self-employment from paid employment (opportunity self-employment) and analyze strain and health over four years relative to individuals in paid employment. Findings: Those with poorer mental health are more likely to self-select into self-employment. After entering self-employment, individuals experience a short-term uplift in mental health due to lower work-related strain, especially for self-employed men. In the longer-term (four years) the mental health of the self-employed drops back to pre-self-employment levels. We find no effect of self-employment on physical health. Practical implications: Our research helps to understand the nonpecuniary benefits of self-employment and suggests that we should not advocate self-employment as a "healthy" career. Originality/value: This article advances research on self-employment and health. Grounded in stress theories it offers new insights relating to self-selection, the temporality of effects, the mediating role of work-related strain, and gender that collectively help to explain why past research yielded conflicting findings.