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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Being independent is a great thing: subjective evaluations of self-employment and hierarchy
Organization Unit
Authors
  • Matthias Benz
  • Bruno Frey
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title Economica
Publisher Wiley-Blackwell
Geographical Reach international
ISSN 0013-0427
Volume 75
Number 298
Page Range 362 - 383
Date 2008
Abstract Text One can be independent, or one can be subject to decisions made by others. This paper argues that this difference, embodied in the institutional distinction between the decision-making procedures ‘market’ and ‘hierarchy’, affects individual wellbeing beyond outcomes. Taking self-employment as an important case of independence, it is shown that the self-employed derive higher satisfaction from work than those employed in organizations, irrespective of income gained or hours worked. This is evidence for procedural utility: people value not only outcomes, but also the processes leading to outcomes.
Digital Object Identifier 10.1111/j.1468-0335.2007.00594.x
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