study transitions in and out of self-employment of older individuals using internationally
comparable survey data from 13 OECD countries. We compute selfemployment transitions
as conditional probabilities arising from a discrete choice panel data model.
We examine the influence on self-employment transitions of labor market policies
and institutional factors (employment protection legislation, spending on employment
and early retirement incentives, unemployment benefits, strength of the rule of
law), as well as individual characteristics like physical and mental health.
Selfemployment is strongly affected by government policies: larger expenditures
on employment incentives impact it positively, while the opposite is true for
expenditures on early retirement and unemployment benefits.