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Why older workers become entrepreneurs? International evidence using fuzzy set methods

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  • Velilla, Jorge
  • Molina, José Alberto
  • Ortega, Raquel

Abstract

In this paper, we empirically analyze the individual characteristics that drive older workers to become entrepreneurs, providing evidence of the differences between developed and developing countries. While OLS models provide limited conclusions, Qualitative Comparative Analysis and fuzzy set logic, at the country level, using GEM 2014 Adult Population Survey micro-data, show the importance of the various combinations of high and/or low presence of skills, opportunities, entrepreneurial perceptions, peer effects, and satisfaction with life and income. This indicates how entrepreneurship may be a potential source of income for older workers, in a range of contexts. Further, we find that all the possible combinations of higher proportions of individuals with the latter features are necessary conditions. Our results contribute by identifying certain aspects of the entrepreneurial behavior of older workers, highlighting certain causal patterns of the complex phenomenon that is entrepreneurship.

Suggested Citation

  • Velilla, Jorge & Molina, José Alberto & Ortega, Raquel, 2018. "Why older workers become entrepreneurs? International evidence using fuzzy set methods," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 88-95.
    • Handle: RePEc:eee:joecag:v:12:y:2018:i:c:p:88-95
    DOI: 10.1016/j.jeoa.2018.03.004
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    More about this item

    Keywords

    Entrepreneurship; Older individuals; Fuzzy set qualitative comparative analysis; GEM data; Global entrepreneurship monitor; Development;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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