Demography

Persistence (discontinuity)

Engineering

Multilevel model

Statistics

Geotechnical engineering

Generation x

Cohort

Economics

Classical economics

Economic geography

Psychology

Propensity score matching

Mathematics

Entrepreneurship

Demographic economics

Sociology

Finance

Baby boomers

Logistic regression

Small Business Economics

The literature on the relationship between age and entrepreneurship has been inconclusive. This study for the first time examines this relationship by extending the occupational choice literature to eight entrepreneur types and four generational modification effects in the USA. Multilevel mixed-effect logistic regression models are estimated to examine the age effects in entrepreneur type propensities. Generational modification effects are compared for the same ages across neighboring generations by hierarchical age-period-cohort (HAPC) models. We find that entrepreneurial propensity rises with age until around 80. The propensity of novice (versus non-novice) and unincorporated (versus incorporated) entrepreneurs has a U-shaped age trend dipping around age 60, while the propensity of full-time (versus part-time) declines since age 30s. The propensity of incorporated (versus unincorporated) entrepreneurs declines from ages 44 to 51 for Gen-Xers, but not for Boomers; this propensity also declines faster for Boomers than for Traditionalists from ages 63 to 70.

Age and entrepreneurship: nuances from entrepreneur types and generation effects