Entrepreneurship among older workers: international evidence

Few cross-country comparisons exist on the topic of third age entrepreneurship. We attempt to fill this gap by assembling comparable data on the United States, England and other European countries. Our contribution is threefold. First, we analyze drivers of self-employment among older workers across countries. Second, we investigate the relationship between self-employment rates and age groups, comparing different countries to understand the role played by country-level institutional variables. Third, we discuss policy implications. Key results are as follows. English and American institutions appear not to push older workers into self-employment; Southern Europe’s institutional rigidities and limited opportunities for flexible full-time work at older ages might explain the push into self-employment observed there. Among workers not retired, those wanting part-time work are largely found in self-employment. These facts challenge policy-makers to promote self-employment as an antidote to limited pension coverage and low incomes. Results lead us to suspect that successful entrepreneurship in old age is associated with earlier successful entrepreneurship experience. Hence, policies strengthening business start-up quality are to be encouraged.