Tax Progressivity and Self-Employment Dynamics

Wiji Arulampalam and Andrea Papini

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

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 1993-2011. Our findings confirm theoretical predictions, and are robust to various changes to de nitions and sample selections. A policy experiment simulating a fl atter tax schedule in the year 2000, is found to encourage both entry into and exit from self-employment, with an increase of about 11.5 percent innet in flow into self-employment.

Keywords: Tax progressivity; Income tax; Self-employment (search for similar items in EconPapers)
JEL-codes: C41 H24 H25 J24 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-ent, nep-knm, nep-lma and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://warwick.ac.uk/fac/soc/economics/research/w ... /twerp_1169_wiji.pdf

Related works:
Journal Article: Tax Progressivity and Self-Employment Dynamics (2023)
Working Paper: Tax Progressivity and Self-employment Dynamics (2021)
Working Paper: Tax Progressivity and Self-Employment Dynamics (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:1169

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