Author Type

Graduate Student

Date of Award

Spring 4-20-2026

Document Type

Dissertation

Publication Status

Version of Record

Submission Date

May 2026

Department

Management Programs

College Granting Degree

College of Business

Department Granting Degree

Management Programs

Degree Name

Doctor of Philosophy (PhD)

Thesis/Dissertation Advisor [Chair]

Donald O. Neubaum

Abstract

A substantial number of older Americans lack confidence in their retirement preparation, and many approach retirement without a formal plan. Additionally, despite the economic significance of self-employment, little research has examined whether self-employed individuals differ from wage workers in retirement preparation and the conditions of underlying such differences. Guided by capability theory, this dissertation investigates the relationship between self-employment and retirement preparation, with particular attention to the mediating roles of financial capability, financial literacy, and financial self-efficacy.

Using data from the 2018 National Financial Capability Study (NFCS) (N = 9,499 working-age adults), the study employs Bayesian structural equation modeling to examine direct and indirect associations between self-employment and retirement preparation, operationalized as having calculated retirement savings needs. The results indicate that self-employment is negatively associated with retirement preparation. Financial capability, financial literacy, and financial self-efficacy are each positively related to retirement preparation; however, self-employment is associated with lower financial capability and financial literacy, but not financial self-efficacy. Indirect effects through financial capability and financial literacy are significant, accounting for approximately 89% of the total negative association between self-employment and retirement preparation, while the path through financial self-efficacy is not significant.

These findings challenge the assumption that self-employment inherently enhances financial acumen and suggest that deficits in financial capability and financial literacy partially explain lower retirement preparation among the self-employed. The results emphasize the importance of targeted financial education, improved access to retirement savings tools, and capability-building interventions tailored to self-employed individuals.

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