Self-Employment and Retirement in Canada: The Labour Force Dynamics of Older Workers

Abstract

Using panel data from the Surveys of Labour and Income Dynamics covering the period 1993 to 2008 in Canada this study examines labour force transitions among older workers. High rates of self-employment among older workers primarily result from greater labour market continuation among the self-employed compared to paid employees. Older self-employed men across all characteristics examined are more likely to continue working at each age, while self-employed women do not respond to age-related factors (such as the pension system) to the same extent as paid employees. Labour market continuation is found to be higher among late-life entrants to self-employment than among paid employees after accounting for individual characteristics and job tenure.