Taxation, Labor Market Policy and High-Impact Entrepreneurship

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. Abstract: Public policy affects the prevalence and performance of both productive and highimpact entrepreneurship. High-impact entrepreneurship prospers when knowledge is successfully generated and exploited in the economy. This process depends on complementary key actors who use their competencies in what we denote a competence bloc. Although variations in economic contexts make prescribing a general panacea impossible, a number of relevant policy areas that affect key actors can be identified. In this paper this is done in the areas of tax policy and labor market policy. It is shown that high and/or distortive taxes and heavy labor market regulations impinge on the creation and functioning of competence blocs, thereby reducing high-impact entrepreneurship. Terms of use: Documents in EconStor may

Corporate income taxes and entrepreneurship

“…Determining the way in which corporate income taxes influence entrepreneurship is a complex and multi-faceted question ( Figure 1) [6]. With regard to corporate income taxation, one …”

“…Several other aspects of corporate income taxation existhowever, which can also have meaningful effects on entrepreneurship, such as the degree of symmetry in the tax treatment of profits and losses and the treatment of holding companies [6].…”

Shadow Economy and Entrepreneurial Entry

“…We therefore exclude entrepreneurs who do not intend to grow their venture to become more than “very small enterprises,” using Portes and Haller () terminology. Henrekson et al () discuss a related but wider concept of “high‐impact entrepreneurship.”…”

Entrepreneurship, Tax Evasion and Corruption in Europe

“…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). In this line, a series of papers examines the impact of income and payroll taxes on the decision to became entrepreneurs (Bruce, 2000;Keuschnigg & Nielsen, 2002;Cullen & Gordon, 2007;Henrekson, Johansson & Stenkula, 2010), while other papers investigate the role of tax progressivity (Robson & Wren, 1999;Folster, 2002). For example, Da Rin, Di Giacomo & Sembenelli (2011) investigate how tax policy fosters the creation of new companies, using a country-industry level panel database for 17 European countries between 1997 and 2004.…”