Self-Employment and Mental Health

43 Pages Posted: 4 May 2013 Last revised: 10 Jul 2019

See all articles by Vicki L. Bogan

Vicki L. Bogan

Cornell University

Angela R. Fertig

University of Minnesota - Twin Cities

David R. Just

Cornell University - Dyson School of Applied Economics and Management

Date Written: June 2019

Abstract

This paper analyzes the role of mental health in self-employment decisions. We find evidence of a relationship between psychological distress and self-employment that depends on the type of self-employment and severity of psychological distress. For women, moderate and severe psychological distress are associated with self-employment in incorporated and unincorporated businesses. For men, there is suggestive evidence of a causal link between having moderate or severe psychological distress and an increased probability of being self-employed in an unincorporated business. Our results also suggest that individual difficulty in the wage-and-salary employment market is the likely mechanism for this connection.

Keywords: Entrepreneurship, self-employment, occupational choice, mental health, depression

JEL Classification: J24, J23

Suggested Citation

Bogan, Vicki L. and Fertig, Angela R. and Just, David R., Self-Employment and Mental Health (June 2019). Available at SSRN: https://ssrn.com/abstract=2259765 or http://dx.doi.org/10.2139/ssrn.2259765

Vicki L. Bogan (Contact Author)

Cornell University ( email )

Warren Hall
Ithaca, NY 14853
United States
607-254-7219 (Phone)

Angela R. Fertig

University of Minnesota - Twin Cities ( email )

420 Delaware St. SE
Minneapolis, MN 55455
United States

David R. Just

Cornell University - Dyson School of Applied Economics and Management ( email )

Ithaca, NY
United States
607-255-2086 (Phone)
607-255-9984 (Fax)

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