Health Disparities between Self-Employed and Wage Workers

Abstract

The purpose of this study was to analyze the health of the self-employed. Specifically, it investigated whether there are differences in health between wage workers and self-employed people and estimated the causal effect of employment status on health. Various variables, including both subjective and objective health indices, were used to assess health according to employment status. The results indicated that the health status of self-employed individuals is generally worse than that of wage earners. Additionally, the analysis using dynamic random effects probit models revealed significant heterogeneity within the self-employed group, showing that self-employment negatively impacts the health of those without employees. Furthermore, the study found that the negative impact of self-employment on health is likely non-linear, influenced by the individuals' typical health status.