The Work and Lives of Dependent Self-Employed Workers in the COVID-19 Pandemic: Focusing on the Differences in Employment Type

Abstract

In this study, we tried to identify and understand the effects of the COVID-19 pandemic on the work and lives of dependent self-employed workers. Using data from the 22nd and 23rd Korean Labor & Income Panel Study, we employed a difference-in-differences model with individual fixed effects to compare the differential effects of the pandemic on work and life between temporary and dependent self-employed and permanent employees. The main findings are as follows. First, we found that, compared with those with permanent employees, dependent self-employed workers had lower job satisfaction in the COVID-19 pandemic, though without statistical significance. Second, COVID-19 has significantly affected life satisfaction for the dependent self-employed. Third, the effects of COVID-19 varied according to various factors in job satisfaction. It led to reduced especially wage or income satisfaction in the dependent self-employed. Fourth, health status affected the overall job satisfaction and life satisfaction of all groups alike. These findings confirmed that the COVID-19 pandemic had a more negative effect on the vulnerable groups of labor market such as dependent self-employed workers. Therefore, we conducted policy discussions in order to reduce job insecurity of dependent self-employed workers in catastrophic risks such as the COVID-19 pandemic.