Tuesday, February 14, 2017

Baby Boomer Entrepreneurship

Annamaria Lusardi (George Washington University) will be our speaker. She is presenting “Entrepreneurship among Baby Boomers: Recent Evidence from the Health and Retirement Study”.

Health and retirement study
Baby Boomers age 52 to 65 in the 2012 wave. N=9063.
Compare boomer entrepreneurs to previous cohort of entrepreneurs of the same age range. (1998 HRS wave).
Very difficult to define entrepreneurs.
Self-employment is measure and proxy of entrepreneurship. Small scale data.
Business ownership is also an imperfect indicator of entrepreneurship. (You could have inherited or purchase. Nothing to do with starting). Another argument to look at the flows than the stocks.
In HRS, both business ownership and business income are reported at the household level.
Measure: 1). Labor force participation 2). Self-employment 3). Receipt of business & wage incomes 4). Partner works n family business as reported by self-employed in individual in a couple
Entrepreneur: self-employed. Working in the family business. Not sole wage earner.
Capture active participation.

Compare with the Kauffman Index, calculated using Census’ Current Population Survey (CPS). You are self-employed and work at least 15 hours.
8% of all individuals in the age range are entrepreneurs (business owners)
13% of all individuals in the age range are self-employed.
In only 39% cases do the two definitions coincide.

Labor force participation in this age group has increased and so condition on lfp, the rate should be more pronounced.

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