The relationship between financial distress and well-being: Exploring the role of self-employment
Jenny Berrill, Damien Cassells, Martha O’Hagan-Luff, André van Stel
Abstract
This article investigate the relationship between financial distress, well-being and employment status. Using several indicators of financial distress and of well-being, our econometric analysis shows that the negative association between financial distress and well-being is moderated by employment status in the sense that financial problems are more strongly associated with poor well-being for the self-employed compared to the wage-employed. Hence, when self-employed workers find themselves in a situation of financial distress, the negative consequences for their well-being are more severe. This is found to hold both for the self-employed with and without employees.
Topics & Concepts
Financial distressDistressWell-beingWagePsychologyDemographic economicsEconomicsLabour economicsClinical psychologyFinancial systemPsychotherapistEmployment and Welfare StudiesRetirement, Disability, and EmploymentPsychological Well-being and Life Satisfaction