Tax Progressivity and Self-Employment Dynamics

• 成果类型: Article
• 署名作者: Arulampalam, Wiji; Papini, Andrea
• 署名单位: University of Warwick; European Commission Joint Research Centre
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_01046
• 发表日期: 2023-03
• 页码: 376-391
• 关键词: unemployment; duration; entrepreneurship; POLICY

摘要

Analysis of the relationship between taxes and self-employment should account for the interplay between responses in self-employment and wage employment. To this end, we estimate a two-state multispell duration model which accounts for both observed and unobserved heterogeneity using a large longitudinal administrative data set for Norway for 1993 to 2011. Our findings confirm theoretical predictions and are robust to various changes to definitions and sample selections. A policy experiment simulating a flatter tax schedule in the year 2000 is found to encourage self-employment, delivering a net increase of predicted inflow into self-employment from 2.8% to 5.3%.