Self-employment and work-related stress: The mediating role of job control and job demand

doi:10.1016/j.jbusvent.2016.10.007

Journal of Business Venturing

Volume 32, Issue 2, March 2017, Pages 178-196

https://doi.org/10.1016/j.jbusvent.2016.10.007 Get rights and content

Highlights

•
The Job Demand-Control model is used to understand origins of work-related stress.
•
A longitudinal Australian sample (HILDA; 2005–2013) is analyzed.
•
The self-employed report significantly less work-related stress than wage workers.
•
Job control fully mediates the relationship between self-employment and stress.
•
The self-employed with employees report more stress than those without employees.

Abstract

Drawing upon the Job Demand-Control (JDC) model, this study investigates differences in work-related stress between the self-employed and wage workers. The JDC model postulates that job demand increases work-related stress, whereas job control reduces it (also by weakening the effect of job demand on work-related stress). Based on this model, we predict that the self-employed experience less work-related stress than wage workers. Empirical analysis of a longitudinal sample from Australia (2005–2013) confirms our expectations and demonstrates that job control fully mediates the negative relationship between self-employment and work-related stress. Further analyses show that self-employed individuals with employees experience more work-related stress than those without employees because of higher job demand.

Section snippets

Executive summary

People experience stress from work when the requirements of their jobs exceed their mental and physical resources and are perceived as threatening or even harmful. Stress from work could not only deteriorate performance at work but may also adversely affect health status and well-being in general. Moreover, the societal costs (e.g., health-care costs and loss of productivity) of work-related stress are substantial. To reduce these personal and societal costs, it is important to gain insight

Stress

Stress “refers to a relationship between the person and the environment where the requirements of the situation exceed the person's resources and are appraised (by him or her) as involving harm, a threat of harm, or a challenge” (Shepherd and Patzelt, 2015, p. 23). The body reacts to stress by producing more energy and strength to overcome the challenge and by curbing bodily functions that are nonessential in a threatening situation (APA, 2016b). Therefore, stress can help individuals to reach

Sample

Our analysis draws on data from the Household, Income and Labour Dynamics in Australia (HILDA) survey. The HILDA is a household-based longitudinal survey that has been in existence since 2001 and contains data about many work-related characteristics. Since the fifth wave (2005–2013), the HILDA survey has included two work-related stress measures, three job demand measures, and three decision authority (job control) measures (see below). The response rate of the waves under investigation is

Summary statistics

Descriptive statistics – means and standard deviations – are presented in Table 2 for individuals in wage work (N = 62,488) and in self-employment (N = 5776) and for the self-employed with (N = 1445) and without employees (N = 4331). Job control and job demand are standardized to enhance the comparability of the estimated coefficients and indirect effects of both variables at a later stage.

We observe in Table 2 that work-related stress is on average lower for the self-employed (2.60) than for wage

Discussion and conclusion

Experiencing work-related stress could have severe consequences for individuals and societies, and understanding its causes is of utmost importance. The literature on self-employment and stress is, however, scarce and has provided mixed results. Our theoretical model predicts and empirical findings show that the self-employed without employees experience significantly less work-related stress than wage workers and that the self-employed with employees experience significantly more stress than

Acknowledgments

The Household, Income and Labour Dynamics in Australia (HILDA) survey was initiated and is funded by the Australian Government Department of Social Services (DSS) and managed by the Melbourne Institute of Applied Economic and Social Research (Melbourne Institute). The findings and views based on these data should not be attributed to either DSS or the Melbourne Institute. C.A.R. acknowledges funding from the Netherlands Organisation for Scientific Research (NWO Veni grant 016.165.004). We would

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Self-employment and work-related stress: The mediating role of job control and job demand

Highlights

Abstract

Section snippets

Executive summary

Stress

Sample

Summary statistics

Discussion and conclusion

Acknowledgments

J. Socio-Econ.

J. Vocat. Behav.

J. Bus. Ventur.

J. Bus. Ventur.

Int. J. Proj. Manag.

J. Bus. Ventur.

J. Bus. Ventur.

Soc. Sci. Med.

Soc. Sci. Med.

J. Vocat. Behav.

Labour Econ.

Organizational Behavior and Human Performance

J. Health Econ.

J. Health Econ.

J. Bus. Ventur.

The Quarterly Review of Economics and Finance

J. Bus. Ventur.

J. Econ. Psychol.

J. Public Econ.

Metabolism

J. Health Econ.

J. Bus. Ventur.

Organizational Behavior and Human Performance

J. Bus. Ventur.

Soc. Sci. Med.

Entrepreneurship capital and economic performance

Reg. Stud.

The job demands-resources model: state of the art

J. Manag. Psychol.

The moderator–mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations

J. Pers. Soc. Psychol.

Why entrepreneurs often experience low, not high, levels of stress: the joint effects of selection and psychological capital

J. Manag.

Occupational stress: coping of police and their spouses

J. Organ. Behav.

Being independent is a great thing: subjective evaluations of self-employment and hierarchy

Economica

Age differences in three components of employee well-being

Appl. Psychol.

Self-employment: more may not be better

Swedish Economic Policy Review

Stress at Work

The personal costs of citizenship behavior: the relationship between individual initiative and role overload, job stress, and work–family conflict

J. Appl. Psychol.

Job control mediates change in a work reorganization intervention for stress reduction

J. Occup. Health Psychol.

The global entrepreneurship monitor (GEM) and its impact on entrepreneurship research

Foundations and Trends in Entrepreneurship

Job strain and psychological distress in white-collar workers

Scand. J. Work Environ. Health

Coping with entrepreneurial stress

Harv. Bus. Rev.

(Why) do self-employed parents have more children?

Rev. Econ. Househ.

Entrepreneurial stress: is it hazardous to your health?

J. Manag. Issues

Is stress worth it? Stress-related health and wealth trade-offs for entrepreneurs

Appl. Psychol.

The impact of entrepreneurship on economic growth

An empirical examination of self-reported work stress among US managers

J. Appl. Psychol.

Social support, individual differences and well-being: a study of small business entrepreneurs and employees

J. Occup. Organ. Psychol.

Is job satisfaction U-shaped in age?

J. Occup. Organ. Psychol.

Occupational stress and variation in cigarette, coffee, and alcohol consumption

J. Health Soc. Behav.