In good as well as in bad times – The effect of household stability on entrepreneurial activity among older individuals

The self-employed are often seen as unmarried, childless, workaholics; however, empirical studies show the contrary. Based on longitudinal data of the US Health and Retirement Study (HRS), it is examined whether the probability of being self-employed as well as the probability of an entrepreneurial exit among individuals aged 51-65 is influenced by the presence of a partner, and the underlying mechanisms of this possible influence. The main findings indeed reveal that the presence of a partner positively influences the probability of being self-employed. The positive presence of a partner through paid-employment or self-employment as opposed to unemployment, and very good health as opposed to poor health, increases the likelihood of being self-employed. It is also found that having a partner who works for pay, having a self-employed partner or having a depressed partner, decreases the probability of an entrepreneurial exit. The self-employed are an important class of workers, and these findings contribute to our understanding of the underlying mechanisms of being and remaining self-employed.