Elderly Entrepreneurship in an Aging US Economy: It's Never Too Late (Series on Economic Development and Growth Vol. 2)

The study of elderly entrepreneurship and its potential impact on labor, Social Security funds and regional economic growth is of significant importance, particularly for the US economy where population aging coincidentally intersects with the economic shift to a "knowledge economy". On the one hand, aging, combined with a declining average retirement age, is expected to result in labor force shortages and Social Security fund exhaustion; yet on the other hand, the "knowledge economy" could elevate the value of elderly human capital as the "knowledge economy" is less physically demanding and more human-capital- and knowledge-based. Building on the utility maximization theory, economic growth theories and social theories of aging, this timely book addresses the old-age effect on entrepreneurial propensity; the sources of seniors' entrepreneurship, including the social and policy variables affecting seniors' entrepreneurship; and the economic, fiscal and labor impacts of elderly entrepreneurship. Contents: Socioeconomic Background: Aging Population, Resulted Labor and Fiscal Crises, and the Possible Solutions; Elderly Entrepreneurship to Sustain the Labor Force: Possibilities and Necessities; Literature Review: Previous Studies; Theoretical Framework; Age and Entrepreneurship; Social and Policy Factors for Elderly Entrepreneurship; Regional Distribution of Elderly Entrepreneurship; The Impact of Elderly Entrepreneurship on Metropolitan Economic Growth; The Labor and Social Security Impacts of Elderly Entrepreneurship; Conclusion and Future Research. CONTENTS......Page 16 Acknowledgments......Page 8 Foreword by Professor Laurie A. Schintler......Page 10 Foreword by Professor Roger R. Stough......Page 14 Abstract......Page 18 List of Abbreviations......Page 20 Part 1: Introduction......Page 22 1. Introduction......Page 24 1. Definitions......Page 26 2. Research Hypotheses and Data......Page 29 3. Methodology......Page 31 4. Roadmap of this Book......Page 32 End notes......Page 34 Part 2: Aging .........Page 36 1. Aging Population......Page 38 2. Aging Labor Force and Labor Force Shortage......Page 44 3. Financial Crisis of Social Services......Page 45 4. Policy Options for the Labor Force Shortage and Expenditure Pressure......Page 48 4.2. Enlarge the labor force......Page 49 4.3. Involving seniors in the labor force as an option......Page 51 5. Disincentives for Elderly Employment......Page 53 5.2. Public policy and financial incentive for early retirement......Page 54 5.3. Structural disincentive for late retirement and cost of employing older people......Page 55 5.4. Stereotype and myth of the old......Page 56 6. Incentives for Elderly Employment......Page 57 6.1. Improved health conditions......Page 58 6.2. Other personal incentives for late retirement......Page 59 6.3. Older workers’ human capital......Page 60 6.4. Flexible work schedule adjustment......Page 62 Summary......Page 63 End notes......Page 64 Part 3: Why Elderly Entrepreneurship?......Page 66 3. Elderly Entrepreneurship to Sustain the Labor Force: Possibilities and Necessities......Page 68 1. Social Possibilities......Page 69 2. Personal Possibilities......Page 70 3. Social Necessities......Page 71 4. Personal Necessities......Page 72 5. Elderly Entrepreneurship as a Means to Retain Seniors in the Labor Force......Page 74 6. Conclusion......Page 76 Summary......Page 77 End notes......Page 78 Part 4: Literature and Theories on Elderly Entrepreneurship......Page 80 4. Literature Review: Previous Studies......Page 82 1. Occupational Choice, Retirement Decision Study, and Elderly Entrepreneurship......Page 83 2. Previous Literature on Age and Entrepreneurship......Page 85 3. Previous Research on Factors Affecting Entrepreneurship Propensity......Page 86 4. Limitations of Current Literature......Page 89 Summary......Page 90 End notes......Page 91 5. Theoretical Framework......Page 92 1. The Notion of the “Knowledge Economy” versus The “Fordist Economy”......Page 93 2.1. Neoclassical growth theory/Solow growth model......Page 95 2.2. New growth theory/endogenous growth theory......Page 96 2.3. Human capital theory......Page 97 2.4. Entrepreneurship capital......Page 98 2.5. Limitations of current growth theories......Page 99 3.1.1. Role theory......Page 100 3.1.2. Disengagement theory......Page 101 3.2.2. Continuity theory......Page 102 3.3.2. Political economy of aging......Page 103 4. Utility Theories: Entrepreneurship and Seniors’ Utility......Page 104 5.1. Central place theory......Page 111 5.2. Growth pole theory......Page 112 6. Conclusion on Theories......Page 113 Summary......Page 114 End notes......Page 115 Part 5: Entrepreneurship of Seniors?......Page 118 6. Age and Entrepreneurship......Page 120 1. Age and Self-Employment......Page 123 2. Elderly Self-Employment in the “Knowledge Economy”......Page 126 3. Age and Entrepreneurship......Page 131 4. Conclusion......Page 135 Summary......Page 136 End notes......Page 137 7. Social and Policy Factors for Elderly Entrepreneurship......Page 140 1. Binomial Logit Model......Page 144 2. Estimation Results......Page 146 3. Discussion and Future Research Directions......Page 151 Summary......Page 153 End notes......Page 155 Part 6: Regional Dynamics of Elderly Entrepreneurship......Page 156 8. Regional Distribution of Elderly Entrepreneurship......Page 158 1. Regional Disparities and Clustering......Page 159 2. Entrepreneurial Environment and Elderly Entrepreneurship......Page 160 2.1. Elderly self-employment rate versus regional non-age-specific self-employment rate......Page 162 2.2. Elderly entrepreneurship level versus regional entrepreneurship level......Page 164 2.3. Elderly entrepreneurship level versus the scale of regional knowledge economy......Page 167 2.4. Elderly self-employment rate versus elderly entrepreneurship level......Page 169 2.5. Elderly entrepreneurship and regional economy in individual regions......Page 173 2.6. Linearity assumption......Page 176 3. Regional Industry Mix and Regional Elderly Entrepreneurship Disparities......Page 178 4. Conclusion......Page 180 End notes......Page 181 9. The Impact of Elderly Entrepreneurship on Metropolitan Economic Growth......Page 182 1. Extensions of the A-Spatial Audretsch and Keilbach (2004) Model......Page 185 1.1. Extension I: The per labor model......Page 186 1.2. Extension II: Sensitivity analysis......Page 188 1.3. Extensions III: The spatial model......Page 189 2. Empirical Evidence......Page 191 3. Conclusion......Page 194 Summary......Page 196 End notes......Page 197 Part 7: Elderly Entrepreneurship to Mitigate Labor and Fiscal Crises......Page 200 10. The Labor and Social Security Impacts of Elderly Entrepreneurship......Page 202 1. Hypotheses......Page 204 2. Methodology......Page 205 2.1. Specification of the base path analysis model......Page 206 2.3. Data sources and base variables......Page 208 2.4. Description of base variables......Page 209 2.5. Variable measurements......Page 212 3. Empirical Evidence......Page 213 4. Limitations of This Study......Page 217 Summary......Page 219 End notes......Page 220 Part 8: Conclusion.........Page 222 11. Conclusion and Future Research......Page 224 1. The Socioeconomic Environment for Elderly Entrepreneurship......Page 225 2. Major Findings......Page 226 3. Policy Implications......Page 228 4. Areas of Future Research......Page 232 5. Concluding Remarks......Page 235 Policy implications......Page 236 Afterword by Professor David W.S. Wong......Page 238 References......Page 240 Appendix......Page 250 Index......Page 280 Building on the utility maximization theory, economic growth theories and social theories of ageing, this book addresses the old-age effect on entrepreneurial propensity. This book also addresses the sources of seniors' entrepreneurship, including the social and policy variables affecting seniors' entrepreneurship.