Entrepreneurs Are Happier Because Autonomy and More Meaningful Work Matter More Than Stress and Workload

(p. R1) “If you look at the data, it turns out that entrepreneurs on average earn less money than a typical employed person, work 13 hours more a week and report that it’s a very stressful occupation,” says Boris Nikolaev, assistant professor of entrepreneurship at Baylor University in Waco, Texas. “But despite that, there’s overwhelming evidence in the literature that entrepreneurs report significantly higher levels of job satisfaction.”

. . .

“Entrepreneurs are happier in terms of all indications (p. R4) of life satisfaction and work satisfaction,” says Ute Stephan, professor of entrepreneurship at King’s College London, who conducted a comprehensive review of more than 100 academic studies on entrepreneurship and well-being. “However, they might be more stressed than the rest of us, as well.”

This unusual mix of stress and happiness comes about, she says, because entrepreneurs tend to be deeply invested in their businesses, and their passion is a double-edged sword: It gives them a strong sense of purpose and autonomy, but it can also lead to worry, late nights, overwork and stress.

. . .

The stress and workload have a strong negative effect, as is evident in other studies, but the sense of doing something important and being their own boss is so gratifying that it outweighs all those negatives and leaves them happier overall.

“What they are doing is important to them, it’s part of who they are, it’s part of their identity, and that’s why it has such a positive impact on well-being,” says Prof. Stephan.

. . .

. . . in a recent study, Prof. Stephan discovered that autonomy alone isn’t enough. It’s important, to be sure—but what entrepreneurs need, above all, is meaning. She analyzed survey data from over 22,000 people in 16 European countries, comparing their feelings of happiness with the extent to which their work gives them a sense of meaning and autonomy.

. . .

She found that entrepreneurs experienced higher levels of happiness than wage-earning employees (4.37 vs. 4.28 on a scale of 1 to 6), as well as higher levels of meaning (4.56 vs. 4.25 on a scale of 1 to 5) and autonomy (2.66 vs. 1.95 on a scale of 0 to 3). Using regression analysis, she discovered that meaning was the decisive factor in entrepreneurial happiness.

“What we found is that much more important than decision-making freedom is the sense of doing something profoundly meaningful,” she says. “That really energizes you, and as an entrepreneur you really need that energy to be creative and to do the work that’s important to you.”

But finding meaning in work doesn’t have to be about changing the world. Framing work in terms of performing an important service can help even entrepreneurs in less glamorous industries find meaning and happiness—such as contractors who help people build a dream home, or accountants saving people from disastrous money problems.

For the full story, see:

Andrew Blackman. “Are Entrepreneurs Happier Than Other People?” The Wall Street Journal (Thursday, Nov. 04, 2021): R1 & R4.

(Note: ellipses added.)

(Note: the online version of the story was updated Nov. 3, 2021 , and has the title “Are Entrepreneurs Happier Than Everybody Else?”)

The comprehensive review by Prof. Stephan mentioned above is:

Stephan, Ute. “Entrepreneurs’ Mental Health and Well-Being: A Review and Research Agenda.” Academy of Management Perspectives 32, no. 3 (Aug. 2018): 290-322.

The recent study by Prof. Stephan mentioned above is:

Stephan, Ute, Susana M. Tavares, Helena Carvalho, Joaquim J. S. Ramalho, Susana C. Santos, and Marc van Veldhoven. “Self-Employment and Eudaimonic Well-Being: Energized by Meaning, Enabled by Societal Legitimacy.” Journal of Business Venturing 35, no. 6 (Nov. 2020): DOI: https://doi.org/10.1016/j.jbusvent.2020.106047.

Humans Still Matter in Chess

(p. A14) Magnus Carlsen, of Norway, steamrolled Russia’s Ian Nepomniachtchi 7.5-3.5 in the best-of-14 series, capturing a decisive victory that solidified his legacy as the greatest in the history of the sport. He has been the world champion since 2013—this was his fifth win—and is the highest-rated player of all time.

What even his rivals marvel at is how Carlsen, 31, has weaponized the computer revolution against them. He does it not by overpowering opponents with calculation, but by harnessing that digital knowledge to turn games into more human battles.

“Magnus is proud of saying that he’s probably the top player who works the least with the computer and is the least influenced by the computer,” said Carlsen’s coach, Peter Heine Nielsen. “He wants to trust his own evaluation, his human touch and to keep that.”

. . .

. . . here’s the twist: the most lethal use of computer-based analysis isn’t to find something that only the machine can see. It’s figuring out what it sees and dismisses that might still be useful. The dream of any computer-savvy chess player is to discover a string of moves that an engine doesn’t necessarily favor, yet taps into a line that their opponent hasn’t prepared.

“That’s the Holy Grail,” said grandmaster Cristian Chirila, who assisted world No. 4 Fabiano Caruana when he faced Carlsen for the world championship in 2018. “If you can get there, that’s a huge advantage.”

In any given situation, the engines might recommend any number of moves and suggest that they are all relatively equal. Those are the obvious ones to study. But by playing a more obscure move—perhaps even one that the computers suggest is disadvantageous—Carlsen thrives by throwing his opponents into that unfamiliar territory.

For the full story, see:

Joshua Robinson and Andrew Beaton. “Computers Revolutionized Chess. Magnus Carlsen Wins by Being Human.” The Wall Street Journal (Friday, December 10, 2021): A14.

(Note: ellipses added.)

(Note: the online version of the story was updated Dec. 10, 2021, and has the same title as the print version.)

“In a World Filled With Distraction,” Apolo Ohno Praises “Deep Work”

(p. C12) Cal Newport’s “Deep Work” eloquently describes how to find an advantage in a world filled with distraction.

For the full review, see:

Apolo Ohno. “12 Months of Reading; Apolo Ohno.” The Wall Street Journal (Saturday, Dec. 11, 2021): C12.

(Note: the online version of the review has the date December 10, 2021, and has the title “Who Read What: Business Leaders Share Their Favorite Books of 2021.”)

The book praised by Ohno is:

Newport, Cal. Deep Work: Rules for Focused Success in a Distracted World. New York: Grand Central Publishing, 2016.

Xi’s Micromanaging “Zero Covid” Policy Hurting Chinese Economic Growth

(p. A1) Earlier this year, Xi Jinping issued brief instructions to education officials in Beijing. China’s leader wanted to reform the country’s $100 billion private tutoring industry, which the state worried was helping well-to-do families gain advantages for their offspring and creating anxiety among families that couldn’t afford the help.

Education officials drafted a plan that included new limits on tutoring for children up to the equivalent of ninth grade, said people familiar with the effort.

The plan was too soft, Mr. Xi said, in a one-sentence note to the education ministry, according to the people.

Scrambling to please him, the ministry expanded the limits to include students up to the equivalent of 12th grade. In addition, it required all private education companies to re-register as nonprofits.

The more extreme rules, issued in July [2021], triggered panic selling that erased tens of billions of dollars from the value of education com-(p. A14)panies listed on U.S. and Hong Kong stock exchanges. Officials from the China Securities Regulatory Commission hastily scheduled meetings with foreign investors to calm them down, according to people familiar with the conversations, and promised that Beijing would consider market impact before introducing future policies.

The episode is just one example of Mr. Xi’s evolving management style as the Chinese president consolidates control of the world’s second-largest economy. He is widely considered the most powerful Chinese leader in a generation. He is also a micromanager who intervenes often, unpredictably and sometimes vaguely in policy matters big and small.

. . .

Behind the scenes, many officials question some of Mr. Xi’s decisions.

In late July [2021], a Covid-19 outbreak caused more than 1,200 infections after months of nearly zero reported cases. Some central government officials, eyeing other countries, suggested it might be time for China to stop its strategy of pursuing “zero Covid” and learn to live with the virus, according to a person familiar with the discussions.

Mr. Xi was furious, said people familiar with the issue. In a note to underlings, he asked if officials were becoming “lax and numbed” in fighting the virus, according to these people and to state media reports. “Zero Covid” would remain the policy.

Local officials intensified their efforts. In late October [2021], they locked more than 30,000 visitors into Shanghai Disneyland and forced them to undergo Covid-19 tests after one customer tested positive. Authorities temporarily shut one of China’s biggest container ports after a single case, hurting global supply chains.

China’s economic growth slowed to 4.9% in the third quarter from the previous quarter’s 7.9% rate. Economists have said China’s zero-tolerance pandemic measures, including lockdowns of residential compounds and cancellations of public events, are likely to have a significant impact on China’s growth if they don’t succeed in snuffing out the virus soon.

Some local government officials have warned against “excessive pandemic prevention” measures, according to speeches quoted on websites. Yet officials keep pressing, fearful they might be punished if a Covid-19 case emerged in their area.

. . .

Mr. Xi later “personally planned, personally proposed, personally deployed and promoted” the development of Xiongan, a new “eco-city,” out of farmland about 60 miles from Beijing, according to state media, and urged state firms to move there. Despite billions of dollars of investment, it hasn’t matched the quick success of Deng-era special economic zones such as Shenzhen.

To comply with the new regulatory regime for after-school tutoring this year, education companies have laid off tens of thousands of employees, including teachers. Given the impact on the industry, officials have been enforcing the rules on tutoring for children only up to the equivalent of ninth grade—as originally proposed.

. . .

“Some only act when the party’s central leadership has instructed them to do so,” Mr. Xi said in a speech to the party’s top disciplinary officials last January, made public only recently. He complained that many officials aren’t competent to deal with complicated issues, and that if he didn’t issue so many instructions, little would get done.

“I issue instructions as a last line of defense,” he said.

For the full story, see:

Josh Chin. “Xi Jinping’s Style: Micromanagement.” The Wall Street Journal (Thursday, Dec. 16, 2021): A1 & A14.

(Note: ellipses, and bracketed years, added.)

(Note: the online version of the story has the December 15, 2021, and has the title “Xi Jinping’s Leadership Style: Micromanagement That Leaves Underlings Scrambling.”)

Chinese Social Media Attacks Walmart as Some Firms Reduce Investment in China

(p. A1) Walmart Inc., the world’s largest retailer, became the latest Western company to face scrutiny over its handling of business involving Xinjiang, following the passage of a U.S. law that virtually bans all imports from the northwestern Chinese region over forced-labor and human-rights concerns.

The Bentonville, Ark.-based retailer attracted anger on Chinese social media beginning last week after internet users shared comments that purported to show that Walmart had stopped stocking products from Xinjiang in its China-based Walmart and Sam’s Club stores.

. . .

Last week, U.S. semiconductor giant Intel Corp. issued an apology to Chinese consumers, partners and the public following an outcry on Chinese (p. A9) social media against the Santa Clara, Calif.-based company, which had published on its website a letter to suppliers asking them to avoid sourcing from Xinjiang.

. . .

Chinese social media campaigns are often not as organic as their overseas peers, as authorities and technology firms curate and censor domestic online content.

. . .

The American Chamber of Commerce in Shanghai said in September that 30% of retail and consumer companies polled in its most recent business survey cited public backlash and consumer boycotts as a top concern, the highest among the major industries covered by the business lobby. More than one-tenth of the companies said they had reduced planned investments in China because of concerns about consumer boycotts.

For the full story, see:

Liza Lin. “Walmart Draws Anger In China Over Xinjiang.” The Wall Street Journal (Tuesday, December 28, 2021): A1 & A9.

(Note: ellipses added.)

(Note: the online version of the story has the date December 27, 2021, and has the title “Walmart Sparks Public Outcry in China Over Products From Xinjiang.”)

Californians Move to Texas, to Prosper

(p. 5) A Californian will feel right at home in Dallas even before touching the ground. Like the suburbs around Los Angeles, San Diego and across the Bay Area, Dallas and other Texas metros are built on the certainty of cars and infinite sprawl; from the air, as I landed, I could see the familiar landscape of endless blocks of strip malls and single-family houses, all connected by a circulatory system of freeways.

. . .

My guide through the Dallas suburbs was Marie Bailey, a real estate agent who runs Move to Texas From California!, a Facebook group that helps disillusioned Californians find their way to the promised land. Bailey is herself a Californian. She and her family moved in 2017 from El Segundo, a beach city next to Los Angeles International Airport, to Prosper, a landlocked oasis of new housing developments north of Dallas. In El Segundo, the median home list price is $1.3 million; in Prosper, it’s less than half that.

And in Prosper, the houses are palatial, many of them part of sprawling new developments that brim with amenities unheard-of in California. “It’s like living in a country club,” Bailey told me, which sounded like hyperbole until she showed me the five-acre lagoon and white sand beach in the development where she and her husband purchased a home. Their house is 5,000 square feet; they bought it for about the same price for which they sold a home they owned in Orange County, which was 1,500 square feet.

Bailey’s move gets to the heart of the great California-Texas migration: housing. As she drove me around Dallas’s suburbs, Bailey would point out cute house after cute house now occupied by a Californian. I had been talking about the idea of choosing between California and Texas, but for many people moving here, Bailey suggested, there really was not much choice at all — it was simply that, economically, they could not make their lives work in California, and in Texas, they could.

. . .

Texas, now, feels a bit like California did when I first moved here in the late 1980s — a thriving, dynamic place where it doesn’t take a lot to establish a good life. For many people, that’s more than enough.

For the full commentary, see:

Farhad Manjoo, Gus Wezerek and Yaryna Serkez. “Is Texas the New California?” The New York Times, SundayReview Section (Sunday, November 28, 2021): 4-5.

(Note: ellipses added.)

(Note: the online version of the commentary has the date Nov. 23, 2021, and has the title “Everyone’s Moving to Texas. Here’s Why.”)

Concentrating at the Office Can Be Harder than Concentrating at Home

(p. A4) Many people returning to offices are starting to wonder how they ever managed to be productive in a place with so many distractions. On top of standard interruptions to the workday that have long existed—say, small talk while making a fresh cup of coffee—there are now new temptations and annoyances (depending on whom you ask) spawned by staggered schedules, hybrid work, and the pandemic-induced realization that socializing can be exhausting.

. . .

Valerie Warshaw, 40, an interior designer with an architecture firm in Richmond, Va., also has trouble focusing with people chatting near her desk, but for different reasons.

“I get distracted just from hearing other people’s conversation and then I’m like, ‘Ooh! I want to chime in on that,’ ” she said. “The group that I’m in is very social.”

. . .

Her noise-canceling AirPods can help but have a downside: she gets startled when people come up behind her desk without warning. Ms. Warshaw has learned the best way to get anything done is to barricade herself in a conference room.

“People don’t disturb you because they think you’re on a call,” she said.

For the full story, see:

Katherine Bindley. “Working From Work Can Be Hard.” The Wall Street Journal (Saturday, Dec. 18, 2021): A1 & A4.

(Note: ellipses added.)

(Note: the online version of the story was updated December 17, 2021, and has the title “Working From Work Is Harder Than It Sounds.”)

E-Mobility Devices Offer Consumers “Lower Virus Risk” and More Convenience Than Public Transit

(p. A9) A boom in electric-powered mobile devices is bringing what is likely to be a lasting change and a new safety challenge to New York’s vast and crowded street grid.

The devices have sprouted up all over. Office workers on electric scooters glide past Manhattan towers. Parents take electric bikes to drop off their children at school. Young people have turned to electric skateboards, technically illegal on city streets, to whiz through the far corners of New York.

Though many of these riders initially gave up their subway and bus trips because of the lower virus risk of traveling outdoors, some say they are sticking with their e-mobility devices even as the city begins to move beyond the pandemic.

“I use the scooter for everything, it’s really convenient,” said Shareese King, 41, a Bronx resident who deleted the Uber app from her phone after she started running her errands on an electric scooter.

Electric bikes, scooters and other devices are in many cases made for urban life because they are affordable, better for the environment, take up little, if any, street space for parking and are just fun to use, said Sarah M. Kaufman, the associate director of the Rudin Center for Transportation Policy and Management at New York University.

For the full story, see:

Winnie Hu and Chelsia Rose Marcius. “As Personal E-Mobility Spreads, Safety Challenges Grow.” The New York Times (Tuesday, October 28, 2021): A9.

(Note: the online version of the story was updated Nov. [sic] 8, 2021, and has the title “As E-Scooters and E-Bikes Proliferate, Safety Challenges Grow.”)

High Inflation Most Hurts the Poor

(p. B2) Inflation has become central to the American zeitgeist in 2021 in a way that it hadn’t been for decades. Google searches are up. Supply chain issues feature into popular Instagram posts. The satire website The Onion warned in a recent headline that “higher prices may force Americans to eat reasonable portions on Thanksgiving.”

Even as inflation hits its highest level since 1982 and inserts itself as a topic of popular discussion, trying to understand it can be a mind-bending task.

. . .

High or unpredictable inflation that isn’t outmatched by wage gains can be especially hard to shoulder for poor people, simply because they have less wiggle room.

Poor households spend a bigger chunk of their budgets on necessities — food, housing and especially gas, which is often a contributor to bouts of high inflation — and less on discretionary expenditures. If rich households face high inflation and their wages do not keep up, they may have to cut back on vacations or dining out. A poor family may be forced to cut back on essentials, like food.

“For lower income households, price increases eat up more of their budget,” said Laura Rosner-Warburton, a senior economist at MacroPolicy Perspectives, pointing out that some research suggests that poor people may even end up paying comparatively more for the same products. That may be partly because they lack the free cash to take advantage of temporary discounts.

Around the world, poor people historically have reported greater concern around inflation, and that is also the case in the United States in the current episode.

For the full story, see:

Jeanna Smialek. “Inflation 101: Stark Facts And Nuance.” The New York Times (Saturday, December 25, 2021): B1-B2.

(Note: ellipsis added.)

(Note: the online version of the story has the date Dec. 24, 2021, and has the title “Inflation Has Arrived. Here’s What You Need to Know.”)

“People Come to This Country to Build Amazing Businesses”

(p. 1) WASHINGTON — ADW Capital Partners would appear to be the kind of hedge fund that Democrats on the Senate Finance Committee would like to tax more heavily: small but growing fast, with $330 million in assets, an incorporation in Delaware but doing business in Florida, and an offshore “feeder” corporation shielding some of its clients from U.S. taxation.

No wonder, then, that its owner, Adam Wyden, has come out as a vocal and vociferous critic of the tax increases being pushed by the committee’s chairman, Senator Ron Wyden of Oregon — his father.

. . .

(p. 25) “The issue is bigger than my father. I’m not interested in discussing anything personal,” he said in a brief phone call before declining to go further. He said he was “not a Trumper” and “not an Ocasio” — referring to Representative Alexandria Ocasio-Cortez of New York, an icon of the Democratic left. He is a libertarian, he said, raised in Washington, D.C., who moved to Florida “to get away from the food fight.”

But he has gone public with his grievances against his father’s proposals, in an appearance last month on CNBC that he recommended for viewing, and in a tweet responding to the elder Mr. Wyden’s assertion that Elon Musk and other billionaires should not get to decide whether to pay taxes based on a Twitter poll.

“Why does he hate us / the American dream so much?!?!?!?!” Adam Wyden said in the Twitter post last month. “Reality is: most legislators have never built anything … so I guess it’s easier to mindlessly and haphazardly try and tear stuff down.”

. . .

“Thankfully, I think I can compound” investment gains “faster than my dad and his cronies can confiscate it,” Adam Wyden wrote.

Lauded on CNBC’s “Squawk Box,” he elaborated on air. “Amazon, Netflix, Google, Tesla: I mean, we are the envy of the rest of the world,” he said. “People come to this country to build amazing businesses, and I want that to continue.”

Without referring to his son, the elder Mr. Wyden suggested a possible reason for his stance: “Many millionaires perhaps may consider themselves tomorrow’s billionaires.”

For the full story, see:

Jonathan Weisman. “Rift Between Senator and Son Shows Challenge of Taxing the Ultrarich.” The New York Times, First Section (Sunday, December 12, 2021): 1 & 25.

(Note: ellipses added.)

(Note: the online version of the story was updated Dec. 11, 2021, and has the title “Rift Between Senator and Son Shows the Challenge of Taxing the Ultrarich.” The online version says that the article appeared on p. 24 of the New York edition of the print version.)

Federal Covid-19 Stimulus Subsidies Reduced Labor Force Participation

(p. A2) . . ., home prices and stocks have soared, in part because of stimulus from the Fed. From the start of 2020 through Sept. 30 this year, U.S. households’ total assets soared 22% to nearly $163 trillion, Fed data show.

At the same time, the labor-force participation rate fell sharply and has remained stubbornly low. At 61.8% in November [2021], it was 1.5 percentage points below its pre-pandemic level. Many older workers retired early. But even among prime-age workers—those between 25 and 54—participation remains down more than a percentage point.

Some economists believe the extra cash is one reason for this. In part, that is based on research showing declines in wealth seem to have had the opposite effect. Falling housing and stock values from 2006 and 2010 led many who otherwise would have fallen out of the labor force to stay in, according to the Federal Reserve Bank of Chicago. The study found that participation was 0.7 percentage point higher than otherwise as a result.

Families that win at least $30,000 in the lottery tend to earn less in the next five years, according to a National Bureau of Economic Research working paper released in July by four University of Chicago scholars. The more a person wins, the bigger the effect that the award has on earnings and employment, the paper found. Upper-income winners are more likely to reduce their hours, while lower-income winners are more likely to drop out of the labor market entirely, the paper found.

In Austria, workers who received severance payments worth two months of pay were far less likely to find a job within 20 weeks compared with those who received no such lump sum, according to a 2006 paper released by the NBER. The researchers also found a similar effect among workers whose unemployment benefits were extended from 20 weeks to 30 weeks.

For the full commentary, see:

Josh Mitchell. ” THE OUTLOOK; New Hope for Easing Labor Shortage.” The Wall Street Journal (Monday, Dec. 20, 2021): A2.

(Note: ellipsis, and bracketed year, added.)

(Note: the online version of the commentary has the date December 19, 2021, and has the title ” THE OUTLOOK; Vast Household Wealth Could Be a Factor Behind U.S. Labor Shortage.”)

The July 2021 NBER working paper mentioned above is:

Golosov, Mikhail, Michael Graber, Magne Mogstad, and David Novgorodsky. “How Americans Respond to Idiosyncratic and Exogenous Changes in Household Wealth and Unearned Income.” National Bureau of Economic Research Working Paper #29000, July 2021.

The published version of the 2006 NBER working paper mentioned above is:

Card, David, Raj Chetty, and Andrea Weber. “Cash-on-Hand and Competing Models of Intertemporal Behavior: New Evidence from the Labor Market.” The Quarterly Journal of Economics 122, no. 4 (Nov. 2007): 1511-60.