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

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Author Info
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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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
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Handle: RePEc:nbr:nberwo:0584

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  1. 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. [Downloadable!] (restricted)
  2. Boskin, Michael J. & Hurd, Michael D., 1978. "The effect of social security on early retirement," Journal of Public Economics, Elsevier, vol. 10(3), pages 361-377, December. [Downloadable!] (restricted)
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  3. Pellechio, Anthony J, 1979. "Social Security Financing and Retirement Behavior," American Economic Review, American Economic Association, vol. 69(2), pages 284-87, May.
  4. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December. [Downloadable!] (restricted)
  5. Boskin, Michael J, 1977. "Social Security and Retirement Decisions," Economic Inquiry, Oxford University Press, vol. 15(1), pages 1-25, January.
  6. Paul J. Taubman & Sherwin Rosen, 1982. "Healthiness, Education, and Marital Status," NBER Working Papers 0611, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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