Reducing barriers to receiving support services and breastfeeding equipment shows promise as part of a broader effort to encourage breastfeeding, particularly the duration of breastfeeding and the amount of time before formula supplementation.
We use a twelve-year panel of tax return data to assess whether or not taxes affect the duration of entrepreneurial activities. In doing so, we provide information to policymakers on the effectiveness of tax policy for influencing the level of entrepreneurial activity. Our study is the first to examine the effects of tax rates on exit decisions using duration analysis techniques.We find convincing evidence that cutting marginal tax rates faced by wage-and-salary workers can reduce the duration of entrepreneurial activities, while cutting marginal tax rates faced by entrepreneurs can lengthen entrepreneurial spells. The relative magnitudes of these effects suggest that an across-the-board tax cut would increase entrepreneurial longevity.
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