Tax policy and entrepreneurship: Empirical evidence from Sweden
(2012) In Small Business Economics 38. p.495-513- Abstract
- This paper examines the relationship between income taxes and the decision to become self-employed using data from Sweden. By making it possible to track a large number of individuals over extended time periods and across a number of tax rate changes while controlling for important additional determinants, available tax-return information from Sweden allows for statistical estimation of the influence income taxes have on the probability of becoming self-employed. The changing tax rate structure combined with the fact that the Swedish tax system does not provide additional tax benefits to small business-entrepreneurs compared with those who work as employees, provides a powerful setting through which to examine the tax-rate structure’s... (More)
- This paper examines the relationship between income taxes and the decision to become self-employed using data from Sweden. By making it possible to track a large number of individuals over extended time periods and across a number of tax rate changes while controlling for important additional determinants, available tax-return information from Sweden allows for statistical estimation of the influence income taxes have on the probability of becoming self-employed. The changing tax rate structure combined with the fact that the Swedish tax system does not provide additional tax benefits to small business-entrepreneurs compared with those who work as employees, provides a powerful setting through which to examine the tax-rate structure’s influence on individuals’ choice to become self-employed. Contrary to many earlier studies based on US data, this paper finds that both average and marginal taxes have a negative impact on the decision to become self-employed. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/1591278
- author
- Hansson, Åsa LU
- organization
- publishing date
- 2012
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- tax policy, Firm start-ups, self-employment, income taxes
- in
- Small Business Economics
- volume
- 38
- pages
- 495 - 513
- publisher
- Springer
- external identifiers
-
- wos:000301461300009
- scopus:84858079667
- ISSN
- 0921-898X
- DOI
- 10.1007/s11187-010-9282-7
- language
- English
- LU publication?
- yes
- id
- 7d20e3a2-4edc-4eda-9d59-55b0000264ee (old id 1591278)
- date added to LUP
- 2016-04-01 10:43:40
- date last changed
- 2022-04-12 17:06:27
@article{7d20e3a2-4edc-4eda-9d59-55b0000264ee,
abstract = {{This paper examines the relationship between income taxes and the decision to become self-employed using data from Sweden. By making it possible to track a large number of individuals over extended time periods and across a number of tax rate changes while controlling for important additional determinants, available tax-return information from Sweden allows for statistical estimation of the influence income taxes have on the probability of becoming self-employed. The changing tax rate structure combined with the fact that the Swedish tax system does not provide additional tax benefits to small business-entrepreneurs compared with those who work as employees, provides a powerful setting through which to examine the tax-rate structure’s influence on individuals’ choice to become self-employed. Contrary to many earlier studies based on US data, this paper finds that both average and marginal taxes have a negative impact on the decision to become self-employed.}},
author = {{Hansson, Åsa}},
issn = {{0921-898X}},
keywords = {{tax policy; Firm start-ups; self-employment; income taxes}},
language = {{eng}},
pages = {{495--513}},
publisher = {{Springer}},
series = {{Small Business Economics}},
title = {{Tax policy and entrepreneurship: Empirical evidence from Sweden}},
url = {{http://dx.doi.org/10.1007/s11187-010-9282-7}},
doi = {{10.1007/s11187-010-9282-7}},
volume = {{38}},
year = {{2012}},
}