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Effects of taxes on youth self-employment and income

Johan Egebark ()

No 2016:4, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: I study the link between taxes and youth self-employment. I make use of a Swedish reform, implemented in 2007–09, which suddenly made the payroll tax and the self-employment tax vary by age. The results suggest that youth self-employment is insensitive to tax reductions, both in the short run and in the somewhat longer run. I also study the effect of the tax reductions on income. For those that are defined as self-employed, I find positive effects on income from self-employment, and negative effects on income from wage employment. This finding suggests that the lower taxes caused the self-employed to reallocate time from employment to self- employment.

Keywords: youth unemployment; self-employment tax; tax subsidy; self-employment (search for similar items in EconPapers)
JEL-codes: H25 H32 J23 J38 J68 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2016-03-01
New Economics Papers: this item is included in nep-eur, nep-lma, nep-pbe and nep-pub
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Citations: View citations in EconPapers (3) Track citations by RSS feed

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Working Paper: Effects of Taxes on Youth Self-Employment and Income (2016) Downloads
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