Premium
Being Independent is a Great Thing: Subjective Evaluations of Self‐Employment and Hierarchy
Author(s) -
BENZ MATTHIAS,
FREY BRUNO S.
Publication year - 2008
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/j.1468-0335.2007.00594.x
Subject(s) - hierarchy , embodied cognition , independence (probability theory) , value (mathematics) , subject (documents) , positive economics , economics , social psychology , psychology , actuarial science , epistemology , computer science , mathematics , market economy , statistics , philosophy , library science
One can be independent, or one can be subject to decisions made by others. This paper argues that this difference, embodied in the institutional distinction between the decision‐making procedures ‘market’ and ‘hierarchy’, affects individual wellbeing beyond outcomes. Taking self‐employment as an important case of independence, it is shown that the self‐employed derive higher satisfaction from work than those employed in organizations, irrespective of income gained or hours worked. This is evidence for procedural utility: people value not only outcomes, but also the processes leading to outcomes.