Self-Employment and Health: Barriers or Benefits?

Abstract:

:The self-employed are often reported to be healthier than wageworkers; however, the cause of this health difference is largely unknown. The longitudinal nature of the US Health and Retirement Study allows us to gauge the plausibility of two competing explanations for this difference: a contextual effect of self-employment on health (benefit effect), or a health-related selection of individuals into self-employment (barrier effect). Our main finding is that the selection of comparatively healthier individuals into self-employment accounts for the positive cross-sectional difference. The results rule out a positive contextual effect of self-employment on health, and we present tentative evidence that, if anything, engaging in self-employment is bad for one's health. Given the importance of the self-employed in the economy, these findings contribute to our understanding of the vitality of the labor force. Copyright © 2014 John Wiley & Sons, Ltd.

journal_name

Health Econ

journal_title

Health economics

authors

Rietveld CA,van Kippersluis H,Thurik AR

doi

10.1002/hec.3087

subject

Has Abstract

pub_date

2015-10-01 00:00:00

pages

1302-1313

issue

10

eissn

1057-9230

issn

1099-1050

journal_volume

24

pub_type

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