Job Stress, Satisfaction, and Mental Health: An Empirical Examination of Self-Employed and Non-Self-Employed Canadians

This study examined the differences in work and nonwork experiences of self-employed and organizationally employed people (salaried employees). Approximately 16 percent of the full-time labor force in the U.S. and Canada is self-employed (Cohen 1996; Wiatrowski 1994). In present-day industrial societies, employment can be divided into two broad categories. The dominant type consists of jobs whose definitions are independent of job holders. Most of these jobs are embedded in hierarchies and are usually salaried jobs (Eden 1975). These jobs are characterized by a high degree of formalization and standardization, and the duties and rewards are generally predetermined. In terms of work role definition, an individual's personality, skills, and devotion can make only a modest difference (Lewin-Epstein and Yuchtman-Yaar 1991). The second category differs from the first in that the scope of the job and its pay-offs are largely determined by the efforts and the skill of the incumbent. These are typically the self-employed jobs which generally exist outside corporate and bureaucratic structures. Self-Employment The number of people who are self-employed, as well as the percentage of all workers who are self-employed, has continued to rise over the past several years in North America (Cohen 1996; Krahn 1991; Wiatrowski 1994). In addition, the number of women who are self-employed has risen steadily (Dallalfar 1994; Devine 1994). For example, in 1993, women made up about one third of the self-employed (Wiatrowski 1994). Self-employed individuals tend to be older than salaried employees - the median age for self-employed individuals is about 44 years as opposed to 37 years for salaried employees. In addition, the rate of self-employment (the number of self-employed divided by all workers) increases with age and is the highest for both men and women 65 years and older (Wiatrowski 1994). Also, self-employed individuals in general have higher formal education than salaried employees (Robinson 1995). The dominant attraction of self-employment appears to be the high degree of independence it allows - the freedom from constraints associated with employment in formal, bureaucratic organization (Chay 1993; Eden 1975; Ketz de Vries 1980; Yusuf 1995). In addition, a number of other positive features of self-employment are highlighted in the literature, including: freedom to make decisions about the business, accountability only to oneself, potential for greater financial rewards and prerequisites, the opportunity to face interesting challenges, escape from the subordinate employee position, relatively high job security, and a feeling of achievement and pride (Akande 1994; Begley and Boyd 1987; Rodgers and Rodgers 1989; Timmons 1978). However, the advantages of self-employment do not come without sacrifice. In many instances, work and its demands dominate the lives of the self-employed profoundly. A clean separation between work and nonwork is generally absent from the lives of the self-employed. A normal work day can be extended to 10 to 12 hours or even longer; and having a full weekend off (Saturday and Sunday) is often only possible in exceptional circumstances (Jamal and Badawi 1995b). Chronic uncertainty and a high rate of failure among small businesses put the self-employed in a state of constant struggle requiring high investment of their emotional and physical resources. Other concerns raised in the literature include personal sacrifices, the burden of responsibility, the dominance of professional life, and the loss of psychological well-being (Akande 1994; Boyd and Gumpert 1983; Boyd and Webb 1982; Loscocco and Leicht 1993). Self-Employed vs. Non-Self-Employed While there are several empirical studies highlighting the attributes and characteristics of small business managers and entrepreneurs (Begley and Boyd 1987; Devine 1994; Herron and Robinson 1993), there are only a few studies in existence which compare the self-employed with organizationally employed individuals with regard to several important outcome variables (Chay 1993; Eden 1975; Jamal and Badawi 1995a; Lewin-Epstein and Yuchtman-Yaar 1991; Naughton 1987; Rahim 1996). …