Types of Institutions and Well-Being of Self-Employed and Paid Employees in Europe

46 Pages Posted: 21 May 2019

See all articles by Michael Fritsch

Michael Fritsch

University of Jena - School of Economics and Business Administration

Alina Sorgner

University of Jena

Michael Wyrwich

University of Jena

Abstract

This paper analyzes the role of different types of institutions, such as entrepreneurship-facilitating entry conditions, labor market regulations, quality of government, and perception of corruption for individual well-being among self-employed and paid employed individuals. Well-being is operationalized by job and life satisfaction of individuals in 32 European countries measured by data from EU Statistics on Income and Living Conditions (EU-SILC). We find that institutions never affected both occupational groups in opposite ways. Our findings indicate that labor market institutions do not play an important role well-being. The results suggest that fostering an entrepreneurial society in Europe is a welfare enhancing strategy that benefits both, the self-employed and paid employees.

Keywords: entrepreneurship, institutions, well-being, life satisfaction, job satisfaction

JEL Classification: L26, I31, D01, D91, P51

Suggested Citation

Fritsch, Michael and Sorgner, Alina and Wyrwich, Michael, Types of Institutions and Well-Being of Self-Employed and Paid Employees in Europe. IZA Discussion Paper No. 12336, Available at SSRN: https://ssrn.com/abstract=3390326

Michael Fritsch (Contact Author)

University of Jena - School of Economics and Business Administration ( email )

Carl-Zeiss-Str. 3
D-07743 Jena
Germany

Alina Sorgner

University of Jena ( email )

F├╝rstengraben 1
Jena, 07743
Germany

Michael Wyrwich

University of Jena ( email )

Furstengraben 1
Jena, Thuringa 07743
Germany

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