Scandinavian Working Papers in Economics

Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

No 325: Who says life is over after 55? Entrepreneurship and an aging population

Mikaela Backman () and Charlie Karlsson ()
Additional contact information
Mikaela Backman: Centre for Entrepreneurship and Spatial Economics, Jönköping International Business School, Postal: Jönköping International Business School, , P. O. Box 1026, , SE-551 11 Jönköping, , Sweden
Charlie Karlsson: Centre of Excellence for Science and Innovation Studies (CESIS ), Jönköping International Business School, Postal: Jönköping International Business School, , P. O. Box 1026, , SE-551 11 Jönköping, , Sweden

Abstract: Several studies confirm a positive inverted U-shaped relationship between age and entrepreneurship. This paper analyses if this statement is true also for Sweden. By focusing on those above the age of 50, this paper adds knowledge about how individuals close to their retirement act in terms of self-employment and to what extent they contribute as entrepreneurs to the overall society. First, it analyses at the regional level the propensity of older people to start firms with a focus on the relationship between different age cohorts and the rate of new firm formation. At the second stage, an individual perspective is taken where the probability to become self-employed is expected to increase as individuals be¬come older but at a decreasing rate. By decomposing the population in different age cohorts, it is possible to find differences in the probability of becoming self-employed. To increase and deepen the knowledge about the relationship between age and entrepreneurship this paper further adds to existing literature by separating regions into different categories along the urban-rural hierarchy. The results in this paper confirm that the rate of entrepreneurship first increases and then decreases with age. Individuals above both 55 and 64 have a positive influence on the rate of entrepreneurship at both the regional as well as the individual level. The impact is stronger in locations that are more rural.

Keywords: Ageing; new firm formation; self-employment; age cohorts; micro data; urban-rural hierarchy

JEL-codes: L26; R12; R30

31 pages, September 30, 2013

Full text files

cesiswp325.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Vardan Hovsepyan ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:31:31.