Does Population Ageing ImpactEntrepreneurial Activity? The Evidence FromSlovenia
Journal Title: International Journal of Business and Management Invention - Year 2018, Vol 7, Issue 1
Abstract
In this paper we present our investigation of impact of population ageing on entrepreneurial activity in Slovenia. Population ageing has many implications for economic and non-economic welfare. First, we introduce the phenomenon of population ageing and provide some literature review on population ageing impact on entrepreneurial activity.Second, we employ multiple regression analysis on cross-section data for Slovenian municipalities.We use secondary data collected from databases of Statistical Office of Republic of Slovenia and Employment Service of Slovenia on demographic and economic variables by 210 municipalities for the year 2009. The regression analysis results confirm ourhypothesis. Municipalities with higher average age also have lower number of enterprises per 100 population. If average age is higher by 1% (by 1 year), the number of enterprises per 100 population is lower on average by 1.7 % (by 0.182 enterprises), ceteris paribus.We may conclude that population ageing without properly addressing it, consequently leads into lower entrepreneurial activity and thus lower economic welfare. That additionally highlights the importance of aproper demographic and social policywhen governing labour market policy.
Authors and Affiliations
Ţiga Čepar, Marjetka Troha, Franko Milost
Keywords
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