Tax structure and entrepreneurship
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. © 2013 Springer Science+Business Media New York.
Small Business Economics
Digital Object Identifier (DOI)
Baliamoune-Lutz, & Garello, P. (2014). Tax structure and entrepreneurship. Small Business Economics, 42(1), 165–190. https://doi.org/10.1007/s11187-013-9469-9