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Self-Employment at Older Ages in Canada

Author

Listed:
  • Raquel Fonseca
  • Simon Lord
  • Simon C. Parker

Abstract

This paper examines the work motivations and incentives of employees and self-employed workers near retirement age. We use a sample of Canadians 50 years and older taken from LISA, the Longitudinal and International Study of Adult. Results are as follows. Poverty is associated positively with the transition from employment to self-employment after 50. Optimism appears to explain in part why employees decide to do the switch. For respondents who were self-employed at least once between 50 and 64 years old, it appears that having had prior self-employment experience does not reduce significantly the probability of being poor after 65.

Suggested Citation

  • Raquel Fonseca & Simon Lord & Simon C. Parker, 2020. "Self-Employment at Older Ages in Canada," Cahiers de recherche / Working Papers 2003, Chaire de recherche sur les enjeux économiques intergénérationnels / Research Chair in Intergenerational Economics.
  • Handle: RePEc:rsi:creeic:2003
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    References listed on IDEAS

    as
    1. John Ameriks & Joseph Briggs & Andrew Caplin & Minjoon Lee & Matthew D. Shapiro & Christopher Tonetti, 2020. "Older Americans Would Work Longer If Jobs Were Flexible," American Economic Journal: Macroeconomics, American Economic Association, vol. 12(1), pages 174-209, January.
    2. Christopher J. Ruhm, 1995. "Secular Changes in the Work and Retirement Patterns of Older Men," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 362-385.
    3. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-827, August.
    4. Naomi E. Feldman & Joel Slemrod, 2007. "Estimating tax noncompliance with evidence from unaudited tax returns," Economic Journal, Royal Economic Society, vol. 117(518), pages 327-352, March.
    5. Erik Hurst & Geng Li & Benjamin Pugsley, 2014. "Are Household Surveys Like Tax Forms? Evidence from Income Underreporting of the Self-Employed," The Review of Economics and Statistics, MIT Press, vol. 96(1), pages 19-33, March.
    6. Hedley Rees & Anup Shah, 1986. "An empirical analysis of self‐employment in the U.K," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 95-108, January.
    7. Michael D. Giandrea & Kevin E. Cahill & Joseph F. Quinn, 2008. "Self-Employment Transitions among Older American Workers with Career Jobs," Boston College Working Papers in Economics 684, Boston College Department of Economics.
    8. Kevin E. Cahill & Michael D. Giandrea & Joseph F. Quinn, 2013. "New Evidence on Self-Employment Transitions Among Older Americans with Career Jobs," Working Papers 463, U.S. Bureau of Labor Statistics.
    9. Dóra Benedek & Orsolya Lelkes, 2011. "The Distributional Implications of Income Under‐Reporting in Hungary," Fiscal Studies, Institute for Fiscal Studies, vol. 32(4), pages 539-560, December.
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    11. Joseph Quinn, 1996. "The Role of Bridge Jobs in the Retirement Patterns of Older Americans in the 1990s," Boston College Working Papers in Economics 324., Boston College Department of Economics.
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    13. Lin, Zhengxi & Picot, Garnett & Compton, Janice, 2000. "The Entry and Exit Dynamics of Self-Employment in Canada," Small Business Economics, Springer, vol. 15(2), pages 105-125, September.
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    More about this item

    Keywords

    self-employment; elderly; retirement; Canada; poverty.;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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