Autonomy or Working Conditions?—Research on Heterogeneity and Influencing Mechanism of Self-Employment on Job Satisfaction in China

The development of globalization and information technology has been promoting informal work rapidly. In this process, self-employment is gradually becoming an important employment approach. As two of the key variables, self-employment laborers’ work autonomy and work conditions are largely discussed as the potential determinants of their work satisfaction. Which of these two factors is actually influencing labors’ satisfaction level? So far, relevant studies are insufficient to respond to this question, especially in developing countries. This study investigates the influence of work autonomy and working conditions on self-employed workers’ job satisfaction in China. China Labor-force Dynamics Survey data is used to examine the impact of self-employment on workers’ job satisfaction and the influence mechanism of work autonomy and working conditions. Propensity score matching and instrumental variable methods were applied to avoid sample selection bias and endogeneity. We found that self-employment has a significant negative effect on job satisfaction; poor working conditions are responsible for self-employed workers’ lower satisfaction level, and self-employment behavior impacts job satisfaction differently in terms of the type and gender of self-employed workers. Therefore, stronger social security and better working conditions for the self-employed should be provided.