Association for Public Policy Analysis & Management

Over the last two decades, older Americans remaining in the labor force have increased from 21.8% (1990) to 31.5% (2010) for the 65-69 year old cohort (U.S. Census Bureau, 2014).  Older Americans are engaging in entrepreneurial activities in order to supplement battered and delayed retirement savings (entrepreneurial push-factors).  In addition, many post-retirees are leveraging accumulated talent, experience and expertise (entrepreneurial push-factors).  Our study examines the socio-economic factors impacting low-income, older entrepreneurs by location features (zip codes). The empirical evidence for older, low-income entrepreneurs appears in Schedule C, SE and F in administrative tax data (IRS, Market Segment).  What remains less understood is: (1) the interaction of Community Development Block Grant (CDBG) expenditures combined with (2) mission-driven non-profit organization location density (IRS, 990 Master File Data), (3) commercial bank and branch locales and (4) the potential clustering of low-income, older entrepreneurs in a specific locale (zip code).  We identify the place-based factors that may contribute to influencing the probability of the 60 year old and over low-income cohort conditional on filing a tax schedule C (sole proprietorship), SE (self-employment), or F (farm/ranch income) in a particular zip code.  We match the administrative tax data to CDBG expenditures, bank and branch locales and IRS 990 non-profit organizations by zip code.  Using the merged data, we apply logistic regression and spatial mapping analysis to assess the statistical significance of the socio-economic, demographic and geographic variables impacting older entrepreneurial activities.