Abstract
Retirement planning is a broad concern for individuals and policymakers alike, particularly as a larger proportion of the population is nearing and passing traditional retirement age. In particular, little is known about the financial literacy of small business owners and how they prepare for retirement compared to their waged and salaried counterparts. We use a publicly available panel data set from the United States to examine the retirement savings decisions of self-employed and non-self-employed individuals nearing retirement age.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Biehl A., T. Gurley-Calvez and B. Hill. (2014). Self-employment of Older Americans: Do Recessions Matter? Small Business Economics 42(2): 297–309.
Bruce, D., D. Holtz-Eakin and J. Quinn. (2000). Self-Employment and Labor Market Transitions at Older Ages. Boston College Center for Retirement Research Working Paper 2000–13.
Canoll, G. D., J. J. Choi, D. Laibson, B. C. Madrian and A. Metrick. (2009) Optimal Defaults and Active Decisions. Quarterly Journal of Economics 124(4): 1639–1674.
Choi, J., D. Laibson, B. Madrian and A. Metrick. (2003). Optimal Defaults. American Economic Review 93(2): 180–185.
Dunn, T., and D. Holtz-Eakin. (1995) Capital Market Constraints, Parental Wealth, and the Transition to Self-Employment among Men and Women. NLS Discussion Paper Series, NLS 96–29. LIS Department of Labor, Bureau of Labor Statistics: Washington, DC.
Dunn, T., and D. Holtz-Eakin. (2000). Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links. Journal of Labor Economics 18(2): 282–305.
Dushi, I., H. M. Iams and J. H. Lichtenstein. (2011). Assessment of Retirement Plan Coverage by Firm Size, Using W-2 Tax Records. Social Security Bulletin 71(2): 53–65.
Evans, D. S., and B. Jovanovic. (1989). An Estimated Model of Entrepreneurial Choice under Liquidity Constraints. Journal of Political Economy 97(4): 808–827.
Evans, D.S., and L. S. Leighton. (1989). Some Empirical Aspects of Entrepreneurship. American Economic Review 79(3): 519–535.
Fairlie, R. W. (1999). The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment. Journal of Labor Economics 17(1): 80–108.
Fairlie, R. W., and H. A. Krashinsky. (2006). Liquidity Constraints, Household Wealth, and Entrepreneurship Revisited. IZA Discussion Paper No. 2201.
Gentry, W. M., and R. G. Hubbard. (2004). Entrepreneurship and Household Saving. Advances in Economic Analysis & Policy 4(1): Article 8. www.bepress.com/bejeap/advances/4/issl/art8. Accessed 1 September 2014.
Gurley-Calvez, T. (2010). Business Owners, Financial Risk and Wealth. Ewing Marion Kauffman Foundation Research Report.
Gustman, A. L., and T. L. Steinmeier. (1998). Privatizing Social Security: First Round Effects of a Generic, Voluntary, Privatized US Social Security System. In M. Feldstein (ed) Privatizing Social Security, 313–357. Chicago: University of Chicago Press for NBER.
Helppie, B., K. A. Kapinos and R. J. Willis. (2010). Occupational Learning, Financial Knowledge, and the Accumulation of Retirement Wealth. Michigan Retirement Research Center Working Paper 2010–237.
Holtz-Eakin, D., D. Joulfaian and H. S. Rosen. (1994). Sticking it Out: Entrepreneurial Survival and Liquidity Constraints, Journal of Political Economy 102(1): 53–75.
Lichtenstein, J. H. (2010). Saving for Retirement: A Look at Small Business Owners. Washington, DC: US Small Business Administration. http://archive.sba.gov/advo/research/rs362tot.pdf. Accessed 1 September 2014.
Madrian, B. C., and D. F. Shea. (2001). The Power of Suggestion: Inertia in 401(k) Participation and Savings behavior. Quarterly journal of Economics 116(4): 1149–1525.
Robb, A. M. and S. Colman. (2009). Characteristics of New Firms: A Comparison by Gender. Ewing Marion Kauffman Foundation Research Report.
Scott, R. H., III. (2009). The Use of Credit Card Debt by New Firms. Ewing Marion Kauffman Foundation Research Report.
Thaler, R., and C. Sunstein. (2003). Libertarian Paternalism. American Economic Review: Papers & Proceedings 93(2): 175–179.
Zissimopoulos, J. L., and A. Karoly (2007). Transitions to Self-Employment at Older Ages: The Role of Wealth, Health, Health Insurance, and Other Factors. Labour Economics 14: 269–295.
Zissimopoulos, J. L., and A. Karoly. (2009). Labor Force Dynamics at Older Ages: Movements into Self-Employment for Workers and Nonworkers. Research on Aging 31(1): 89–111.
Zissimopoulos, J. L., A. Karoly and Q. Gu. (2010). Liquidity Constraints, Household Wealth and Self-employment: The Case of Older Workers. RAND Working Paper WR725.
Editor information
Editors and Affiliations
Copyright information
© 2015 Tami Gurley-Calvez, Kandice A. Kapinos and Donald Bruce
About this chapter
Cite this chapter
Gurley-Calvez, T., Kapinos, K.A., Bruce, D. (2015). Retirement Planning, Financial Literacy and Small Business Owners. In: Sappleton, N., Lourenço, F. (eds) Entrepreneurship, Self-Employment and Retirement. Palgrave Macmillan, London. https://doi.org/10.1057/9781137398390_2
Download citation
DOI: https://doi.org/10.1057/9781137398390_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-48532-1
Online ISBN: 978-1-137-39839-0
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)