Do demographics influence aggregate entrepreneurship?

Abstract

Analysing a cross-country panel of 53 countries from 2001 to 2009, we find that the age distribution of a population is related to entrepreneurial activity. More specifically, a high share of young people in a country positively influences nascent entrepreneurship, whereas a high share of older people has a negative influence.

Keywords:

• entrepreneurship
• demographics
• aging
• population distribution

JEL Classification:

• J11
• L20

Notes

¹ Argentina, Australia, Austria, Belgium, Bolivia, Canada, Chile, Colombia, Croatia, the Czech Republic, Denmark, Ecuador, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, India, Indonesia, Iran, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kazakhstan, Korea, Latvia, Macedonia, Mexico, the Netherlands, New Zealand, Norway, Peru, the Philippines, Poland, Portugal, Puerto Rico, Romania, Russia, Serbia, Slovenia, Spain, Sweden, Switzerland, Uganda, the UK, the USA, Uruguay, and Venezuela.

² This correlation is also confirmed by calculating the variance inflation factor. The results are available upon request.