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

Chang-Lan Xia,Tung-Ju Wu,An-Pin Wei,Pei-Guan Wu

doi:10.3390/ijerph18010179

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.

Highlights

Chinese IT employees report that “rule 996” is currently widespread in the industry and has become a factor in career development decisions, i.e., choosing between searching for a job or becoming an entrepreneur [1]
Transformational entrepreneurs are more likely to have a high level of subjective wellbeing than subsistence entrepreneurs
The results show that autonomy, self-actualization, and perceived equity were positively correlated to increased odds of high job-related wellbeing, while entrepreneurs were less likely to have high level of job-related wellbeing than employees

Summary

Introduction

Chinese IT employees report that “rule 996” is currently widespread in the industry and has become a factor in career development decisions, i.e., choosing between searching for a job or becoming an entrepreneur [1]. Rule 996 states that an employee should work from 9 am to 9 pm 6 days per week. This has led to heated debate, as it is widespread in the IT industry, and in many companies in other sectors. The supportive environment for entrepreneurs offers a more attractive career choice than the harsh working conditions experienced by the Chinese employees

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Conclusion