Self-Employment and Mental Health

44 Pages Posted: 4 May 2013 Last revised: 24 Jul 2021

See all articles by Vicki L. Bogan

Vicki L. Bogan

Duke University; Cornell SC Johnson College of Business

Angela R. Fertig

University of Minnesota - Twin Cities

David R. Just

Cornell University - Charles H. Dyson School of Applied Economics and Management

Date Written: July 20, 2021

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 for men that depends on type of self-employment and severity of psychological distress. Specifically, there is suggestive evidence of a causal link from moderate psychological distress to self-employment in an unincorporated business as a main job for men. Additionally, we find evidence that long term mental illness can significantly increase the probability of self-employment in an unincorporated business for both men and women. Our results suggest that individual difficulty in wage-and-salary employment 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 (July 20, 2021). Available at SSRN: https://ssrn.com/abstract=2259765 or http://dx.doi.org/10.2139/ssrn.2259765

Vicki L. Bogan (Contact Author)

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

Cornell SC Johnson College of Business ( email )

Ithaca, NY 14850
United States

Angela R. Fertig

University of Minnesota - Twin Cities ( email )

420 Delaware St. SE
Minneapolis, MN 55455
United States

David R. Just

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

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

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