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    Job dissatisfaction of the self-employed in Indonesia

    Access Status
    Fulltext not available
    Authors
    Kwon, I.
    Sohn, Kitae
    Date
    2017
    Type
    Journal Article
    
    Metadata
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    Citation
    Kwon, I. and Sohn, K. 2017. Job dissatisfaction of the self-employed in Indonesia. Small Business Economics. TBA: pp. 1-17.
    Source Title
    Small Business Economics
    DOI
    10.1007/s11187-016-9820-z
    ISSN
    0921-898X
    School
    Department of Economics & Property
    URI
    http://hdl.handle.net/20.500.11937/61935
    Collection
    • Curtin Research Publications
    Abstract

    © 2017 Springer Science+Business Media New YorkIn 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.

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