In this study, the authors investigate the health associations of different employment arrangements in the contemporary European labor market. In doing so, a new approach based on the concept of “employment quality” is introduced. Employment quality refers to the multiple dimensions characterizing the employment situation of wage- and self-employed (European Working Conditions Survey 2015 – N = 31,929). Latent class cluster analyses were applied to construct an overarching typology of employment quality for the waged and self-employed. Using logistic regression analyses, strong associations were found with mental well-being and self-reported general health, pointing at a disadvantaged situation for the most precarious employment arrangements. The study shows that employment quality should be taken seriously as a health determinant both among waged workers and the self-employed. Our (novel) holistic approach offers an alternative to current analyses of the health associates of labor market segmentation that were criticized for being overly simplistic and amounting to inconclusive findings.