Income and occupational choice responses of the self-employed to tax rate changes: Heterogeneity across reforms and income

Bösch, Nicole; Boer, Henk-Wim de

doi:10.1016/j.labeco.2019.02.005

Cited by 7 publications

(3 citation statements)

References 27 publications

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“…Payroll taxes appear to have had a slight negative impact on the unincorporated rate of self-employment. In the Netherlands, the response of self-employment income and the choice of self-employment over wage employment to tax changes is studied by Bosch and Boer [22] They take advantage of multiple tax reforms between 1999 and 2012 that affected self-employment and wage income in different ways. They discovered that selfemployed people respond to tax incentives far more strongly than wage earners and that they did so more in response to the large tax reform in 2001 than the two smaller reforms in 2005 and 2007.…”

Section: Empirical Surveymentioning

confidence: 99%

Taxation and Entrepreneurship: Panel Data Evidence from SAARC Countries

Shifaniya,

Vidanage

2023

SAJSSE

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Entrepreneurship plays a vital role in the economy; there is no well-established evidence on how taxes affect start-up activity in SAARC countries. We examine the effects of the personal income tax rate on self-employment using the annual time series data from the SAARC countries for the period 2015 to 2019. According to the differenced-GMM model developed by Arellano and Bond [1], the personal income tax rate has a statistically significant and negative impact on self-employment rate. The result shows that a one percentage point increase in the personal income tax rate is associated with a 0.03 percentage point decrease in the self-employment rate, while other variables being constant. The results confirm that the negative incentive effect dominates the causation between personal tax rate and self-employment for this panel. This suggests that in SAARC countries, there is still a negative correlation between personal income tax rates and entrepreneurship. According to the Robustness tests, an increase in the personal income tax rate discourages entrepreneurship as measured by the number of new limited liability companies and business density rate, two alternative measures of entrepreneurship. An important implication of our result is that a reduction in personal income tax rate encourages self- employment. Our findings are significant in designing the tax policy in SAARC countries. Removing tax barriers for entrepreneurs would boost the dynamic of SAARC countries while also making the tax structure more neutral, efficient, and simple for all taxpayers.

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Section: Empirical Surveymentioning

confidence: 99%

Taxation and Entrepreneurship: Panel Data Evidence from SAARC Countries

Shifaniya,

Vidanage

2023

SAJSSE

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“…Carroll et al (2000b) and Fossen et al (2020) investigate the effects of tax rate changes on entrepreneurial investment. Bruce et al (2015), Bruce and Glenn (2016), Bruce et al (2019), and Bosch and de Boer (2019) analyze tax effects on small business income. 4 Bruce et al (2020) provide a recent and excellent survey on the taxation and entrepreneurship literature.…”

Section: Introductionmentioning

confidence: 99%

Income Taxation and Hours Worked in Different Types of Entrepreneurship

Can,

Fossen

2023

SSRN Journal

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“…The purpose of the study is to substantiate the growth of self-employment as both the global [1][2][3][4][5][6][7][8] and the Russian trend. The increase in the number of self-employed citizens is inextricably related to the growth in the number of people who have an internal need in the additional basic and specialized education.…”

Section: Introductionmentioning

confidence: 99%

Sociological Research on Self-Employed Respondents in the Context of Developing Self-Employed Citizens’ Education Management in the Conditions of Digitalization

et al. 2020

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The authors’ goal has been to show the need to improve both the general level of education of self-employed citizens, and, mainly, the actual level of specialized competencies. The modern world does not tolerate an unskilled approach in any business. Therefore, special education for self-employed citizens is their internal need that has direct impact on their well-being and relevance in the modern labor market. Real digital technologies aim at improving comfort for self-employed citizens while realizing their need in specialized education. For efficient forecasting, the inductive analysis method has been chosen. This is when the current and previous situations in the self-employed market are examined, then the main factors of the market development are revealed, and the main reasons for the formalization of self-employment are considered. Based on this, the prospects for increasing the self-employed citizens’ groups as consumers of general and specialized education are defined. Sociological instruments of this study include expert surveys, in-depth interviews, analysis of Internet publications of central print media, and content analysis. The main results of the study are as follows: • There is an exponential increase in the number of registered self-employed citizens – consumers of specialized education in the medium term. • Self-employed citizens specializing in such areas as IT, tutoring, online courses, beauty industry may become the most promising in the market of additional specialized education. • Self-employed citizens aged 35 – 45 are the most promising in the market of general education, mainly in pension legislation. • The accessibility of self-employed citizens as potential consumers of educational services can be ensured mainly through their official registration. The official registration of self-employed citizens can be stimulated by a) more favorable tax regimes for self-employed citizens, b) a simplified registration procedure, and c) the introduction of harsh administrative penalties for evading the registration.

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Income and occupational choice responses of the self-employed to tax rate changes: Heterogeneity across reforms and income

Cited by 7 publications

References 27 publications

Taxation and Entrepreneurship: Panel Data Evidence from SAARC Countries

Taxation and Entrepreneurship: Panel Data Evidence from SAARC Countries

Income Taxation and Hours Worked in Different Types of Entrepreneurship

Sociological Research on Self-Employed Respondents in the Context of Developing Self-Employed Citizens’ Education Management in the Conditions of Digitalization

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