Never the Same after the First Time: The Satisfaction of the Second-Generation Self-Employed

26 Pages Posted: 23 May 2008

See all articles by Andrew Clark

Andrew Clark

Paris School of Economics (PSE); IZA Institute of Labor Economics

Nathalie Colombier

Centre de Recherche en Économie et Management (CREM); M@rsouin

David Masclet

Université de Rennes I; M@rsouin

Abstract

Previous empirical work has shown that the self-employed are generally more satisfied than salaried workers. This paper contributes to the existing literature in two ways. First, using French data from the ECHP and British data from the BHPS, we investigate the domains over which this differential operates. We show that, after controlling for occupation, self-employed workers are generally more satisfied with working conditions and pay, but less satisfied than employees with respect to job security. We then consider the differences between the first- and second-generation self-employed. The first-generation self-employed (those whose parents were not self-employed) are more satisfied overall than are the second-generation self-employed. We argue that this finding is consistent with the self-employed partly comparing their labor market outcomes with those of their parents, as well as parental transfers which loosen the self-employment participation constraint. This result is found in both pooled and panel analysis.

Keywords: satisfaction, self-employment, parents, intergenerational comparisons

JEL Classification: J20, J21, J23, J24

Suggested Citation

Clark, Andrew Eric and Colombier, Nathalie and Masclet, David, Never the Same after the First Time: The Satisfaction of the Second-Generation Self-Employed. IZA Working Paper No. 3476, Available at SSRN: https://ssrn.com/abstract=1136277 or http://dx.doi.org/10.2139/ssrn.1136277

Andrew Eric Clark (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Nathalie Colombier

Centre de Recherche en Économie et Management (CREM) ( email )

7 place Hoche
Rennes, Bretagne 35065
France

M@rsouin ( email )

France

David Masclet

Université de Rennes I ( email )

11 Rue Jean Macé
35065 Rennes Cedex, Rennes
France

M@rsouin ( email )

France

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