Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy

36 Pages Posted: 13 Mar 2003

See all articles by Bruno S. Frey

Bruno S. Frey

CREMA; University of Basel

Matthias Benz

University of Zurich - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: June 2003

Abstract

One can be independent, or subject to decisions made by others. This paper empirically tests whether individuals attach an intrinsic value to the institutional difference between independence and hierarchy. Taking self-employment as an important case of independence, it is shown that the self-employed derive more utility from their work than people employed by an organization, irrespective of income gained or hours worked. This is evidence for procedural utility: people do not only value outcomes, but also the conditions and processes leading to these outcomes.

Keywords: Procedural Utility, Institutions, Hierarchy, Self-Employment, Job Satisfaction

JEL Classification: D00, M54, J23, J81, L22

Suggested Citation

Frey, Bruno S. and Benz, Matthias, Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy (June 2003). CESifo Working Paper Series No. 959; Zurich IEER Working Paper No. 135. Available at SSRN: https://ssrn.com/abstract=359822

Bruno S. Frey

CREMA ( email )

Südstrasse 11
Zurich, CH 8008
Switzerland
+41 44 380 00 78 (Phone)

University of Basel ( email )

Peter Merian-Weg 6
Basel, 4002
Switzerland

Matthias Benz (Contact Author)

University of Zurich - Department of Economics ( email )

Zuerich, 8006
Switzerland

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