Opportunity or Necessity? Disaggregating Self-Employment and Entry at Older Ages

Abstract

Bridging the literatures on entrepreneurship and the aging workforce, we study the factors, particularly job loss, wealth, education, and risk aversion, associated with entry into self-employment at older ages using a multinomial logit hazard model. Using the Health and Retirement Study, we disaggregate self-employment by defining four types through an interaction along two scopes: one that divides along those with supervisory responsibilities or business asset ownership and the other divided into so-called "knowledge" and "non-knowledge" occupations. We find that job loss shows a strong association with entry into self-employment, particularly with less desirable forms of self-employment. In addition, we show that there are large differ ences between individuals in these alternative measures of self-employment and that there are distinctive factors that influence entry into these types. Additionally, we show that there are some differences in the factors affecting men's and women's entry into self-employment.

Precarious versus Entrepreneurial Origins of the Recently Self‐Employed: Work and Family Determinants of Canadians’ Self‐Employment Transitions

“…In contrast, the professional self-employed report the longest work hours. The higher prevalence of low earners among the nonprofessional self-employed has been documented elsewhere, reinforcing the view that they represent a more precarious and less entrepreneurial economic arrangement (Budig 2006;Moulton and Scott 2016). Regarding work-family differences, the nonprofessional self-employed report lower work-family conflict than wage workers, while both groups of self-employed are slightly more likely than wage workers to have nonpaid caregiving responsibilities.…”

“…Budig (), for example, finds that entry into professional self‐employment is more common among those with more education and job skill but detected no association between human capital and entry into nonprofessional self‐employment; instead, those experiencing job loss and undesirable work conditions, including irregular shift work, were more likely to enter nonprofessional self‐employment. Relatedly, Moulton and Scott () find that openness to risk—considered to represent an entrepreneurial trait—is only associated with entry into knowledge‐based entrepreneurial ventures.…”

SOBRE A RELAÇÃO ENTRE AUTO EMPREGO E MULHERES CHEFES DE FAMÍLIA: Uma revisão sistemática

“…A sociologia e psicologia social são áreas que têm discutido a mudança da condição da mulher no mercado de trabalho e na estrutura social da família (SCASE;GOFFEE, 1988;MOULTON;SCOTT, 2016). E a administração tem discutido a realidade e desafios do empreendedorismo com mais intensidade (HUEFNER; HUNT, 1994;PEREDO;MCLEAN, 2006), portanto, para pesquisar a relação entre mulheres chefes de família e auto emprego, um bom ponto de partida seria entender o que a literatura indica em termos de diferenças e semelhanças entre os conceitos de empreendedorismo e auto emprego.…”

The role of self-employment in Ireland’s older workforce

“…Transitions to self-employment were also less likely for those who were expecting a pension from their current job. Moulton and Scott (2016) examine entry into self-employment at older ages using the HRS.…”