The struggle is real: self-employment and short-term psychological distress

We test whether self-employed individuals report more short-term psychological distress compared to paid employees. The ability to pursue their entrepreneurial dreams could lead self-employed individuals to experience feelings of positive emotion, autonomy, and confidence that can lower short-term psychological distress. Yet, the significant demands of self-employment undertakings might also induce feelings of negative emotions, helplessness, and lack of control typically associated with increased short-term psychological distress. We investigate the relationship between self-employment and self-reported, short-term psychological distress using a sample of 171,883 respondents from the 1997–2015 cross-sectional surveys of the National Health Interview Survey (NHIS). Results indicate that self-employment has a positive association with psychological distress. Findings are robust to matched-pair sampling and alternate measures of levels of psychological distress.