A Conceptual Framework on Self-Employment in Later Life: Toward a Research Agenda

Abstract

Older adults consistently have a higher rate of self-employment than their younger counterparts, and the rates of self-employment among workers continue to rise as age increases from the “young old” to the “old old.” However, we know relatively little about why older adults decide to pursue self-employment in later life, the self-employment experience itself, and the individual and societal outcomes of this growing type of work. Additionally, we know very little about how age itself is a factor in the decision to pursue this type of work in later life, how age impacts the type of self-employment pursued and its outcomes, and if and how other factors mediate the effects of age on self-employment. This article, through a review of the current empirical and conceptual literature, presents a new conceptual framework of self-employment in later life. It posits that there are several individual (e.g., age and other sociodemographic factors, perceived future time, and personal preferences and values) and contextual (e.g., family, community, and societal characteristics) antecedents, as well as individual (i.e., health and well-being and economic security) and societal (i.e., economic and community value) outcomes to later-life self-employment. It also argues for more exploratory research on the self-employment experiences of older adults, including how, where, and with whom the work is completed. Finally, this article provides a set of propositions designed to support a scholarly research agenda on self-employment in later life.