<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Purpose:</bold> The purpose of the research is to investigate impact of population ageing on unemployment and entrepreneurial activity in Slovenia since it is one of the topical issues in an ageing Europe and has many implications for economic and non-economic welfare.<bold>Design and Methodology:</bold> First, we introduce the phenomenon of population ageing and provide some literature review on population ageing impact on unemployment and 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.<bold>Results:</bold> The regression analysis results confirm our first hypothesis: municipalities with higher ageing index and higher average age also have higher registered unemployment rate. If ageing index (average age) is higher by 1 %, the registered unemployment rate is higher on average by 0.532 % to 0.670 % (by 2.431 % to 3.379 %), ceteris paribus. Our regression analysis also confirms our second hypothesis: 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.<bold>Conclusion:</bold> We may conclude that population ageing without properly addressing it, consequently leads into lower economic welfare. That additionally highlights the importance of a proper demographic and social policy when governing labour market policy.</abstract>

Purpose: The purpose of the research is to investigate impact of population ageing on unemployment and entrepreneurial activity in Slovenia since it is one of the topical issues in an ageing Europe and has many implications for economic and non-economic welfare.Design and Methodology: First, we introduce the phenomenon of population ageing and provide some literature review on population ageing impact on unemployment and 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.Results: The regression analysis results confirm our first hypothesis: municipalities with higher ageing index and higher average age also have higher registered unemployment rate. If ageing index (average age) is higher by 1 %, the registered unemployment rate is higher on average by 0.532 % to 0.670 % (by 2.431 % to 3.379 %), ceteris paribus. Our regression analysis also confirms our second hypothesis: 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.Conclusion: We may conclude that population ageing without properly addressing it, consequently leads into lower economic welfare. That additionally highlights the importance of a proper demographic and social policy when governing labour market policy.

Impact of Population Ageing on Unemployment and Entrepreneurial Activity: the Case of Slovenia

Lekšan d.o.o. Bloška Polica 8, SI-1384 Grahovo, Slovenia

University of Primorska, Faculty of Management, Cankarjeva 5, SI-6000 Koper, Slovenia

Organizacija

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Purpose: The purpose of the research is to investigate impact of population ageing on unemployment and entrepreneurial activity in Slovenia since it is one of...

Impact of Population Ageing on Unemployment and Entrepreneurial Activity: the Case of Slovenia

Published Online: Dec 05, 2015

Page range: 232 - 245

Received: Sep 01, 2015

Accepted: Oct 26, 2015

DOI: https://doi.org/10.1515/orga-2015-0020

Keywords
unemployment, entrepreneurship, population ageing, labour market, Slovenian municipalities

© 2015 Marjetka Troha Akanni et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Impact of Population Ageing on Unemployment and Entrepreneurial Activity: the Case of Slovenia

Published Online: Dec 05, 2015

Page range: 232 - 245

Received: Sep 01, 2015

Accepted: Oct 26, 2015

DOI: https://doi.org/10.1515/orga-2015-0020

Keywordsunemployment, entrepreneurship, population ageing, labour market, Slovenian municipalities

© 2015 Marjetka Troha Akanni et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
unemployment, entrepreneurship, population ageing, labour market, Slovenian municipalities