Unseen strain: how entrepreneurial pursuits undermine spousal well-being

Using nationally representative UK panel data (BHPS 1991–2008; UKHLS 2009–2022), we analyze 628 couples in which one partner moves from paid employment to self-employment and compare them with entropy-balanced couples whose partner changes employers. A weighted first-difference difference-in-differences design estimated in a dyadic structural-equation model shows that entrepreneurial entry lowers the other spouse’s well-being through two channels: the entrant’s longer work hours (non-pecuniary) and reduced personal income (pecuniary). The relative importance of these channels depends on context. Male founders transmit strain primarily through additional hours, while venture form differentiates the pecuniary and temporal burdens: solo start-ups hurt spouses chiefly via income losses, whereas employer start-ups do so via time demands. By unravelling these mechanisms, the study advances our understanding of how, when, and for whom self-employment undermines spousal well-being, exposing the hidden costs that entrepreneurial ventures impose on partners.