Are Chinese Entrepreneurs Happier than Employees? Evidence Based on a National Workforce Survey in China

Abstract

Most studies consider entrepreneurship in Chinese a happier career choice, while the adverse effects of entrepreneurship on wellbeing have been overlooked. In this research, the effect of career choice on job-related wellbeing is explored using multiple indicators. Differences in the career choices of employees and entrepreneurs are examined in the first section of the study, and the motives for entrepreneurship are studied in the second section. Job-related wellbeing is regarded as consisting of job satisfaction, subjective wellbeing, and physical wellbeing. The data were obtained using the Chinese Labor-Force Dynamic Survey, and the sample consisted of 6108 employees and 2075 entrepreneurs from 29 provinces and cities in China. T-test, chi square test, and ordinal logistic regression were conducted. The analysis in the first section reveals significant differences in job-related wellbeing between employees and entrepreneurs along with differences in autonomy and perceived equity. Entrepreneurs are found to be less satisfied and unhappier than employees. The heterogeneity of the motives for entrepreneurship is highlighted in the second part, and its significant role in the wellbeing of entrepreneurs is explored. Subsistence entrepreneurs have been found to constitute up to 64% of all entrepreneurs. Subsistence entrepreneurship is negatively associated with job satisfaction and subjective wellbeing.