For freedom or income? Depression among independent self-employed individuals and the mediating mechanisms: empirical evidence from China

Abstract

AbstractIndependent self-employment (ISE) has a crucial impact on new job creation as well as sustainable and inclusive growth. However, the findings on depression status among self-employed individuals are mixed owing to the lack of targeted classifications or the use of different classification criteria. This study investigated the association between depression and ISE, and conducted a categorical comparison of ISE. Using logit models, the study employed data from the 2018 China Labor-force Dynamics Survey (CLDS) (N = 10,758) to explore differences in depression status between individuals with ISE and those with non-ISE individuals and employees. Further, intellectual and physical ISE were distinguished. This study tested the mediating roles of job freedom and income. ISE individuals were significantly less likely to experience depression than non-ISE individuals and employees. The odds ratio (OR) of ISE with depression was 0.828 times that of non-ISE individuals and employees. The OR of intellectual ISE with depression was 0.717 times that of non-ISE individuals and employees. The regression results of depression in relation to physical ISE were not significant. A mechanism analysis showed that income (rather than work freedom) reduced the risk of depression among intellectually ISE individuals. Significantly different risk levels of depression were found between ISE individuals, and non-ISE individuals and employees in China, particularly between intellectually ISE individuals, and non-ISE individuals and employees. Moreover, the mediating role of income was identified, contradicting prior knowledge that a high degree of work freedom is what leads to high happiness and job satisfaction in self-employment.