EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis
Vol 13 No 4 (2025): Oktober

The Impact Of Employment Status: Self-Employment And Wage-Employment On Mental Health

Marwa Sari (Fakultas Ekonomi dan Bisnis Universitas Indonesia)
Putu Geniki Lavinia Natih (Fakultas Ekonomi dan Bisnis, Universitas Indonesia)



Article Info

Publish Date
28 Sep 2025

Abstract

This study analyzes the impact of employment status on mental health by comparing self-employed and wage-employed individuals in Indonesia. Using longitudinal data from the Indonesia Family Life Survey (IFLS) waves 4 and 5, this study applies a fixed effects model to explore this relationship while accounting for various demographic and socioeconomic controls. The findings reveal that self-employed individuals have higher mental health scores, indicating poorer mental health compared to wage-employed individuals. However, this effect becomes insignificant after including control variables in the model. Job transition analysis indicates that individuals transitioning from self-employment to wage-employment tend to have higher mental health scores, while those remaining in wage employment exhibit a lower risk of mental health issues. Heterogeneity analysis reveals that self-employed women are more vulnerable to mental health issues compared to men, while individuals with disabilities demonstrate better mental health in self-employment than in wage employment.

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Journal Info

Abbrev

ER

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Energy Other

Description

Ekombis Review: Jurnal Ilmiah Ekonomi dan Bisnis is a peer-reviewed journal. Ekombis invites academics and researchers who do original research in the fields of economics, management, and ...