Job dissatisfaction of the self-employed in Indonesia

Job dissatisfaction of the self-employed in Indonesia In developed countries, the self-employed have been found to be more satisfied with their jobs than paid employees. We found the exact opposite for a developing country after analyzing 8732 respondents in the Indonesian Family Life Survey. The job dissatisfaction of the self-employed was not fully explained by earnings, personal traits, job characteristics, anticipation, or adaptation, but mostly by segregation into a small number of industries with few job benefits. This finding is consistent with the dual labor market theory. We also found that among the self-employed, those with the highest probability of being paid employees were the least satisfied. Paid employment was highly sought after in developing countries, and these were presumably self-employed workers with high abilities. This finding cannot be explained by the dual labor market theory alone. To explain this inconsistency, we enriched this theory with relative deprivation. Our results suggest that the existence of the dual labor market and relative deprivation are important determinants of the job satisfaction of the self-employed in developing countries. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Job dissatisfaction of the self-employed in Indonesia

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Publisher
Springer US
Copyright
Copyright © 2017 by Springer Science+Business Media New York
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-016-9820-z
Publisher site
See Article on Publisher Site

Abstract

In developed countries, the self-employed have been found to be more satisfied with their jobs than paid employees. We found the exact opposite for a developing country after analyzing 8732 respondents in the Indonesian Family Life Survey. The job dissatisfaction of the self-employed was not fully explained by earnings, personal traits, job characteristics, anticipation, or adaptation, but mostly by segregation into a small number of industries with few job benefits. This finding is consistent with the dual labor market theory. We also found that among the self-employed, those with the highest probability of being paid employees were the least satisfied. Paid employment was highly sought after in developing countries, and these were presumably self-employed workers with high abilities. This finding cannot be explained by the dual labor market theory alone. To explain this inconsistency, we enriched this theory with relative deprivation. Our results suggest that the existence of the dual labor market and relative deprivation are important determinants of the job satisfaction of the self-employed in developing countries.

Journal

Small Business EconomicsSpringer Journals

Published: Jan 3, 2017

References

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