Understanding the decline in self-employment among individuals nearing retirement

Bradley Heim

Small Business Economics, 2015, vol. 45, issue 3, 580 pages

Abstract: This paper examines the sources of the decline in self-employment among near-retirees over 1994–2012. Using Current Population Survey data, tabulations imply that the decline was driven by an increase in the exit rate to wage and salary employment, a decline in the rate of self-employment among new entrants into this age cohort, and an increase in the share of these new entrants. Multinomial logits suggest that health insurance coverage and after-tax prices of health insurance were significantly associated with these three rates. However, counterfactual simulations suggest that only the changes in after-tax prices of health insurance were found to appreciably influence the trends in these rates, though in the opposite direction of the actual declining trend for the rate of self-employment of new entrants. Copyright Springer Science+Business Media New York 2015

Keywords: Self-employment; Retirement; Health insurance; Taxes; Markov chain; L26; J68; I13 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (8)

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DOI: 10.1007/s11187-015-9660-2

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