Transitions To and From Self- Employment Among Older People With Disabilities in Europe

Abstract

This paper analyses the labor-market transitions among older people with disabilities in Europe as compared to their non-disabled counterparts. Particular attention is paid to the workers’ transitions to and from self-employment. Using data from the two first waves (2004 and 2007) of a panel data from the Survey of Health, Ageing and Retirement in Europe (SHARE), we estimate employment transition matrices for disabled and non-disabled individuals aged 50 years or over, taking into account the possible transitions in disability status that individuals may experience throughout our panel data. The results show that older people with disabilities (especially females) who are self-employed in 2004 are less likely to remain in the same labor status three years later. In contrast, transitions from self-employment to “out of labor force” were relatively higher for disabled individuals as compared to non-disabled ones. In addition, the results vary when we take into consideration the disability trajectories. Areas of future research and policy recommendations are given.