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Age, labour market situation and the choice of risky innovative entrepreneurship

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  • Manoj Chandra Bayon
  • Olivier Lamotte

Abstract

We examine the effect of age and the moderating effect of labour market situations on individuals’ decisions to enter into risky innovative entrepreneurship. Using population-level data from 94 countries from the Global Entrepreneurship Monitor database we find that although age is negatively related to the choice of innovative entrepreneurship, the age–innovative entrepreneurship choice relationship is moderated by the labour market status of the individual. More specifically, full-time employed older individuals, who are most likely to become successful entrepreneurs, are less likely to choose risky innovative entrepreneurship. Considering that innovative entrepreneurship is crucial for economic growth, our results point to the importance of facilitating employed middle-age and older individuals’ entries into innovative entrepreneurship especially in a context of ageing societies.

Suggested Citation

  • Manoj Chandra Bayon & Olivier Lamotte, 2020. "Age, labour market situation and the choice of risky innovative entrepreneurship," Applied Economics Letters, Taylor & Francis Journals, vol. 27(8), pages 624-628, May.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:8:p:624-628
    DOI: 10.1080/13504851.2020.1728221
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