Types of institutions and well-being of self-employed and paid employees in Europe

Michael Fritsch, Alina Sorgner, Michael Wyrwich*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

8 Citations (Scopus)
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This paper analyzes the role of different types of institutions, such as entrepreneurship-facilitating entry conditions, labor market regulations, quality of government, and perception of corruption for individual well-being among self-employed and paid employed individuals. Well-being is operationalized by job and life satisfaction of individuals in 32 European countries measured by data from EU Statistics on Income and Living Conditions (EU-SILC). We find that institutions never affected both occupational groups in opposite ways. Our findings indicate that labor market institutions do not play an important role for well-being. The results suggest that fostering an entrepreneurial society in Europe is a welfare-enhancing strategy that benefits both, the self-employed and paid employees.

Original languageEnglish
Pages (from-to)877-901
Number of pages25
JournalSmall Business Economics
Issue number2
Early online date2020
Publication statusPublished - Feb-2021


  • Entrepreneurship
  • Institutions
  • Subjective well-being
  • Life satisfaction
  • Job satisfaction

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