higher job satisfaction than the employed, even after controlling for income and hours worked. However, there is a large amount of heterogeneity in this effect: while “independent types” experience a large increase in job satisfaction from being self-employed, “hierarchical types” even...

n this paper we first use the Italian Survey of Household Income and Wealth to document how various household choices (including consumption and wealth) change in response to an income change. We show that these responses are not consistent with simple benchmark models (i.e. complete markets or...