EconPapers    
Economics at your fingertips  
 

Tax Progressivity and Self-employment Dynamics

Wiji Arulampalam and Andrea Papini

No 2021-03, JRC Working Papers on Taxation & Structural Reforms from Joint Research Centre

Abstract: 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 multi-spell duration model which accounts for both observed and unobserved heterogeneity using a large longitudinal administrative dataset 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%.

Keywords: Tax progressivity; Income tax; Self-employment; Duration analysis. (search for similar items in EconPapers)
JEL-codes: C41 H24 H25 J24 (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-ent, nep-lma, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://publications.jrc.ec.europa.eu/repository/handle/JRC125068 (application/pdf)

Related works:
Working Paper: Tax Progressivity and Self-Employment Dynamics (2021) Downloads
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:ipt:taxref:202103

Access Statistics for this paper

More papers in JRC Working Papers on Taxation & Structural Reforms from Joint Research Centre Contact information at EDIRC.
Bibliographic data for series maintained by Publication Officer ().

 
Page updated 2025-03-19
Handle: RePEc:ipt:taxref:202103