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Labor Market Policies and Self-Employment Transitions of Older Workers

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  • Dimitris Christelis
  • Raquel Fonseca

Abstract

We study transitions in and out of self-employment of older individuals using internationally comparable survey data from 13 OECD countries. We compute selfemployment transitions as conditional probabilities arising from a discrete choice panel data model. We examine the influence on self-employment transitions of labor market policies and institutional factors (employment protection legislation, spending on employment and early retirement incentives, unemployment benefits, strength of the rule of law), as well as individual characteristics like physical and mental health. Selfemployment is strongly affected by government policies: larger expenditures on employment incentives impact it positively, while the opposite is true for expenditures on early retirement and unemployment benefits.

Suggested Citation

  • Dimitris Christelis & Raquel Fonseca, 2015. "Labor Market Policies and Self-Employment Transitions of Older Workers," Cahiers de recherche 1516, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.
    • Handle: RePEc:lvl:criacr:1516
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    Cited by:

    1. Elitcha Koffi & Fonseca Raquel, 2018. "Self–Employment, Wealth and Start–up Costs: Evidence from a Financial Crisis," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(3), pages 1-28, July.
    2. Nazim Habibov & Elvin Afandi & Alex Cheung, 2017. "What is the effect of university education on chances to be self-employed in transitional countries?: Instrumental variable analysis of cross-sectional sample of 29 nations," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 487-500, June.
    3. Ana Ostrovidov Jaksic & Ivan Jaksic, 2019. "How to prolong labour market participation in the Republic of Croatia?," Public Sector Economics, Institute of Public Finance, vol. 43(1), pages 79-108.

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    More about this item

    Keywords

    self-employment; transitions; ageing; labor policies; panel data;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics

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