Does Self-Employment Increase Stress?

A new study re-examines the relationship between self-employment and stress.

Entrepreneurs enjoy autonomy. Self-employment gives them the freedom to work on projects they are passionate about, which in turn may improve their mental well-being. At the same time, they face several sources of stress, including long working hours. Empirical evidence on whether those who engage in self-employment experience greater stress than those who do not is mixed. This could reflect the failure to consider self-selection into entrepreneurial careers.

In a new paper, researchers re-examine the relationship between self-employment and stress, over and above the self-selection bias of individuals’ predispositions, using two separate studies of monozygotic twins. In the first study (monozygotic twins from Finland), stress is reported as a perceptual measure. In the second study (monozygotic twins from the United States), the researchers measure cortisol as a physiological indicator of stress.

In both studies, a positive association between self-employment and stress (both perceived and physiological) above and beyond the impact of genetic and rearing factors, is evident. The research also shows that long working hours mediate the relationship between self-employment and stress.

The paper Does Self-Employment Increase Stress? A Co-Twin Control Analysis of Finnish and US Twins can be requested at City Research Online.