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Self-Employment and Labor Force Participation of Older Males (Revised)

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  • Victor R. Fuchs

Abstract

This longitudinal analysis of the labor market behavior of older, urban white males in 1969, 1971, and 1973 focuses on changes from wage-and-salary to self-employment and changes from working to non-working status. In each two-year transition approximately four percent of wage-and-salary workers switched to self-employment. They were primarily men who were previously self-employed or who were in wage-and-salary occupations with characteristics similar to self-employment, e.g., managers and salesmen. For a blue collar worker employed forty hours per week the predicted probability of switching was close to zero. Controlling for a large number of economic and demographic variables, the self-employed were significantly more likely to continue to work, partly by reducing their workweek to under 35 hours. Other significant predictors of continuing to work are good health, years of schooling, white collar occupation, no expectation of a private pension, and a workweek longer than fifty hours. Age is also important, especially at the eligibility ages set by social security.

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File URL: http://www.nber.org/papers/w0584.pdf
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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0584.

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Date of creation: Aug 1982
Date of revision:
Handle: RePEc:nbr:nberwo:0584

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References

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  1. Pellechio, Anthony J, 1979. "Social Security Financing and Retirement Behavior," American Economic Review, American Economic Association, vol. 69(2), pages 284-87, May.
  2. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
  3. Burkhauser, Richard V & Turner, John A, 1978. "A Time-Series Analysis on Social Security and Its Effect on the Market Work of Men at Younger Ages," Journal of Political Economy, University of Chicago Press, vol. 86(4), pages 701-15, August.
  4. Paul J. Taubman & Sherwin Rosen, 1982. "Healthiness, Education, and Marital Status," NBER Working Papers 0611, National Bureau of Economic Research, Inc.
  5. Michael J. Boskin & Michael D. Hurd, 1980. "The Effect of Social Security on Early Retirement," NBER Working Papers 0204, National Bureau of Economic Research, Inc.
  6. Boskin, Michael J, 1977. "Social Security and Retirement Decisions," Economic Inquiry, Western Economic Association International, vol. 15(1), pages 1-25, January.
  7. Richard V. Burkhauser, 1979. "The Pension Acceptance Decision of Older Workers," Journal of Human Resources, University of Wisconsin Press, vol. 14(1), pages 63-75.
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Cited by:
  1. McCarthy, Patrick S., 1999. "Public policy and highway safety: a city-wide perspective," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 231-244, March.
  2. Bruce, Donald, 2000. "Effects of the United States tax system on transitions into self-employment," Labour Economics, Elsevier, vol. 7(5), pages 545-574, September.
  3. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September.
  4. Zissimopoulos, Julie M. & Karoly, Lynn A., 2007. "Transitions to self-employment at older ages: The role of wealth, health, health insurance and other factors," Labour Economics, Elsevier, vol. 14(2), pages 269-295, April.
  5. Atalay, Kadir & Kim, Woo-Yung & Whelan, Stephen, 2013. "The Decline of the Self-Employment Rate in Australia," Working Papers 2013-03, University of Sydney, School of Economics.
  6. Bell, David N.F. & Rutherford, Alasdair C., 2013. "Older Workers and Working Time," IZA Discussion Papers 7546, Institute for the Study of Labor (IZA).
  7. Simoes, Nadia & Moreira, Sandrina B. & Crespo, Nuno, 2013. "Individual Determinants of Self-Employment Entry – What Do We Really Know?," MPRA Paper 48403, University Library of Munich, Germany.
  8. Levesque, Moren & Shepherd, Dean A. & Douglas, Evan J., 2002. "Employment or self-employment: A dynamic utility-maximizing model," Journal of Business Venturing, Elsevier, vol. 17(3), pages 189-210, May.
  9. Bruce, Donald & Schuetze, Herbert J., 2004. "The labor market consequences of experience in self-employment," Labour Economics, Elsevier, vol. 11(5), pages 575-598, October.
  10. repec:dgr:uvatin:2010067 is not listed on IDEAS

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