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Self-employment transitions at older ages in different local labor markets

  • Hannu Tervo

    ()

  • Hannu Niittykangas

Workforce is aging in most developed countries, but still needed in productive work. Entrepreneurship at older ages is an option for many aging individuals. As existing and future generations are healthier and more able to work than previous generations, working careers can, and also have been extended. Various reasons such as age, health, gender and education, family status, accumulated savings and organizational factors can affect the choice between full-time work, bridge employment and retirement. But bridge employment as well as career choices may also be affected by many environmental factors. Regions with strong traditions of entrepreneurship may be more favourable to bridge employment in the form of self-employment than other regions. On the other hand, demand conditions may also account for possibilities to bridge employment. Regions with a low level of demand may not be favourable to self-employment at older ages. While some studies have focused on transitions into self-employment among older workers, the question of the motives and background still need clarification. This paper analyzes those who start a business at older ages in different regions in Finland. Who are they, and what is their background? What is the effect of human and financial capital on self-employment decisions? What is the role of previous experience in entrepreneurship - are those without experience from entrepreneurship different from those who have it? Is self-employment at older ages a real alternative only for serial and habitual entrepreneurs? In the analysis, we utilize a large longitudinal micro data to examine transfers of workers and those out of employment aged 55-74 into self-employment in Finland in 1998-2004. The data set represents a 7 percent sample of all Finns in 2001 of whom we have a lot of register-based and other data even from the year 1970 onward. Note: An alternative choice was : theme N: enterpreuneurship, networks and innovation

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p764.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa11p764
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  1. Christos Kalantaridis & Zografia Bika, 2006. "In-migrant entrepreneurship in rural England: beyond local embeddedness," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 18(2), pages 109-131, March.
  2. Michael D. Giandrea & Kevin E. Cahill & Joseph F. Quinn, Ph.D., 2008. "Self-Employment Transitions among Older American Workers with Career Jobs," Working Papers 418, U.S. Bureau of Labor Statistics.
  3. Roope Uusitalo, 1999. "Homo Entreprenaurus?," Discussion Papers 205, Government Institute for Economic Research Finland (VATT).
  4. Sarah Brown & Lisa Farrell & John G Sessions, 2001. "Employment Contract Matching: An Analysis of Dual Earner Couples and Working Households," Discussion Papers in Economics 01/9, Department of Economics, University of Leicester.
  5. Hannu Niittykangas & Hannu Tervo, 2005. "Spatial variations in intergenerational transmission of self-employment," Regional Studies, Taylor & Francis Journals, vol. 39(3), pages 319-332.
  6. Carroll, Glenn R. & Mosakowski, Elaine M., 1987. "The Career Dynamics of Self-Employment," Institute for Research on Labor and Employment, Working Paper Series qt13p1n10b, Institute of Industrial Relations, UC Berkeley.
  7. Sarah Brown & Lisa Farrel & John Sessions, 2006. "Self-Employment Matching: An Analysis of Dual Earner Couples and Working Households," Small Business Economics, Springer, vol. 26(2), pages 155-172, 03.
  8. Ari Hyytinen & Pekka Ilmakunnas, 2007. "What distinguishes a serial entrepreneur?," Industrial and Corporate Change, Oxford University Press, vol. 16(5), pages 793-821, October.
  9. Wim Naudé & Thomas Gries & Eric Wood & Aloe Meintjies, 2008. "Regional determinants of entrepreneurial start-ups in a developing country," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 20(2), pages 111-124, March.
  10. repec:cup:cbooks:9780521728355 is not listed on IDEAS
  11. Hannu Tervo, 2008. "Self-employment transitions and alternation in Finnish rural and urban labour markets," Papers in Regional Science, Wiley Blackwell, vol. 87(1), pages 55-76, 03.
  12. Ritsila, Jari & Tervo, Hannu, 2002. " Effects of Unemployment on New Firm Formation: Micro-level Panel Data Evidence from Finland," Small Business Economics, Springer, vol. 19(1), pages 31-40, August.
  13. Delmar, Frédéric & Folta, Timothy & Wennberg, Karl, 2008. "The dynamics of combining self-employment and employment," Working Paper Series 2008:23, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  14. Victor R. Fuchs, 1982. "Self-Employment and Labor Force Participation of Older Males," Journal of Human Resources, University of Wisconsin Press, vol. 17(3), pages 339-357.
  15. Donald Bruce & Douglas Holtz-Eakin & Joseph F. Quinn, 2000. "Self-Employment and Labor Market Transitions at Older Ages," Boston College Working Papers in Economics 490, Boston College Department of Economics.
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