Taxation and Self-Employment

Zsofia Barany ()

SciencePo Working papers Main from HAL

Abstract: In this paper I study the relation between self-employment and the tax rates on wages and on self-employment income. Using variation in the statutory tax rates across countries, industries, and occupations, I find that while the share of self-employed is strongly positively correlated with the tax rate on wage income, it is weakly negatively correlated with the tax rate on self-employed income. The asymmetry between the effects of the tax rates suggests that those who choose self-employment partly do so in order to evade taxes. This extensive margin of adjustment – between employment and self-employment – should be taken into account when considering the effects of tax rates on labor income, on taxable income and on welfare.

Keywords: Tax-rates; Self-employment; Tax evasion (search for similar items in EconPapers)
Date: 2018-03-01
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03393144
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://sciencespo.hal.science/hal-03393144/document (application/pdf)

Related works:
Working Paper: Taxation and Self-Employment (2018)
Working Paper: Taxation and Self-Employment (2018)
Working Paper: Taxation and self-employment (2017)
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:hal:spmain:hal-03393144

Access Statistics for this paper

More papers in SciencePo Working papers Main from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics ().