Tax structure and entrepreneurship

Mina Baliamoune and Pierre Garello ()

Small Business Economics, 2014, vol. 42, issue 1, 165-190

Abstract: Using macro-level panel data, we examine the effects of taxation and tax progressivity on entrepreneurship in a large group of European countries. We address two main questions. First, we try to explore whether tax increases discourage entrepreneurial activity, focusing on new self-employment (nascent entrepreneurship). Second, we investigate the impact of tax progressivity on entrepreneurship, again focusing on new self-employment. We find that tax progressivity at higher-than-average incomes has a robust negative effect on nascent entrepreneurship. We discuss the policy implications of our results. Copyright Springer Science+Business Media New York 2014

Keywords: Entrepreneurship; Tax structure; Progressivity; Panel data; C23; H24; H29; M13; L26 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11187-013-9469-9 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Tax Structure and Entrepreneurship (2011)
Working Paper: TAX STRUCTURE AND ENTREPRENEURSHIP (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:42:y:2014:i:1:p:165-190

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

DOI: 10.1007/s11187-013-9469-9

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().