Taxation and entrepreneurship in a welfare state

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Does tax policy affect the rate of self-employment in a modern welfare state? This question is analyzed empirically based on Swedish data for the entire post-war period. Available tax data indicate that payroll taxes have had a negative influence on the unincorporated rate of self-employment, though the effect is modest. No effects from regular labor income taxation or capital gains taxation are found. The paper improves upon earlier studies in that it tries to separate the effects of different taxes, and uses cointegration techniques. A further extension is that it studies a Scandinavian high-tax welfare state. Earlier time-series studies analyzing selfemployment and taxation have with few exceptions been based on data from countries with relatively low tax levels and less comprehensive welfare systems, notably the US and the UK. Terms of use: Documents in EconStor mayJEL-codes: H2, J23, L26.

Does health reform affect self-employment? Evidence from Massachusetts

“…5 This study is also related to the larger literature that examines the impact of tax policy on self-employment and entrepreneurship. Some recent contributions in this area include Fairlie and Meyer (1999), Gentry and Hubbard (2000), Bruce (2000Bruce ( , 2001, Moore (2003), Heim (2010), Stenkula (2012), Ferede (2013), and Baliamoune-Lutz and Garello (2014). but these impacts were offset by negative impact on single filers and taxpayers age 35-49.…”

Linking Entrepreneurship and Economic Growth in Sweden, 1850–2000

“…Edvinsson's (2005a) series differ as compared to one of the dominating databases (Compendia) since other methods for calculation and definitions have been used. 22 In the domain of entrepreneurship research, Edvinsson's data has previously been used by Stenkula (2012) for the period 1947-2000. In line with past research, nonagricultural self-employment is used throughout the entire analysis.…”

Entrepreneurship, Tax Evasion and Corruption in Europe

“…Taxation can affect the entrepreneurial entry in different ways, trough the level of investment, risk taking, and trough the occupational choice (Bruce & Gurley, 2004;Asoni & Sanandaji, 2014). Stenkula (2012) identifies three channels which link taxation and entrepreneurship, underlined by the theoretical literature, namely the incentive effect affecting the effort of self-employed people, the evasion effect affecting the willingness to become self-employed and to take advantage of the opportunities to decrease the tax burden, and the insurance effect associated with risk taking. Therefore, considerable empirical work has been done to analyze the relationship between taxes and entrepreneurship (for a review of the literature, see Bruce & Schuetze, 2004).…”