Entrepreneurship as an occupational choice has been the subject of analysis in various theoretical and empirical studies. Recent studies emphasize that job satisfaction is an important determinant of the choice between self- and wage-employment (Taylor, 1996; Blanchflower, 2000, 2004). A consistent finding from previous studies is that self-employed have higher levels of job satisfaction than employees. However, such studies failed to take account of the fact that job satisfaction is a heterogeneous phenomenon. Different people can mean different things when they evaluate the extent of satisfaction with their job (Muñoz de Bustillo-Llorente and Fernández-Macías, 2005; Bianchi, 2008). Therefore it is difficult to assess what job satisfaction captures and how it can be influenced by policy makers. In this study we try to take an initial step in overcoming this problem by making a distinction between two types of job satisfaction, i.e. job satisfaction with the type of work and job satisfaction with job security.