Workforce Age and Entrepreneurship

The Institute of Economics will hold a seminar meeting as part of its Seminar Series on Tuesday, March 5, 2024: Rui Agostinho from Instituto Superior Tecnico will present the paper "Workforce Age and Entrepreneurship".

Abstract: 

Our study offers a career perspective on transitions into entrepreneurship. Informed by rank theory, enriched with insights from the dynamic managerial capabilities literature, we examine individuals’ career pathways towards entrepreneurship and investigate whether i) performing managerial roles involving responsibility for deciding and implementing strategy facilitates transitions to entrepreneurship; ii) reaching such managerial roles, and, indirectly, entrepreneurship, is less likely in firms with older workforces; and iii) whether non-managerial workers who may be frustrated by slow career progress are more likely to also become entrepreneurs. Using detailed linked employer-employee microdata for Portugal, we find that occupying top and middle management roles facilitates entrepreneurship, while delayed career progression leads workers to switch firms as employees but does not make them more likely to engage in entrepreneurship. Importantly, firms with younger workforces and management ranks are more likely to offer chances for workers to occupy managerial positions and, therefore, to spawn entrepreneurs.

Seminar will be in Aula 5.