EconPapers    
Economics at your fingertips  
 

Population Ageing and Entrepreneurship: Theory and Evidence From OECD Countries

Rui Zhang and Mengyao Kang

Journal of Regional Science, 2025, vol. 65, issue 3, 586-602

Abstract: This paper studies how population ageing affects individuals' choice between entrepreneurship and employment with enterprises. We develop a theoretical model where individuals are different in their entrepreneurial ability. A representative worker integrates the professional status of all workers as: (1) a younger worker, (2) an older worker, and (3) a retiree. Entrepreneurs and workers are required to pay taxes to contribute to the pension fund. We find that a higher proportion of the elderly population leads to a lower proportion of individuals choosing to become entrepreneurs because of a higher tax burden. A higher pension replacement rate also discourages individuals from starting a business. Using data from OECD. Stat, Eurostat, and the World Bank database, our empirical results support the model's predictions.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/jors.12754

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jregsc:v:65:y:2025:i:3:p:586-602

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-4146

Access Statistics for this article

Journal of Regional Science is currently edited by Marlon G. Boarnet, Matthew Kahn and Mark D. Partridge

More articles in Journal of Regional Science from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-07-02
Handle: RePEc:bla:jregsc:v:65:y:2025:i:3:p:586-602