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Tax Structure And Entrepreneurship

Author

Listed:
  • Mina Baliamoune-Lutz

    (IREF - Chercheur indépendant)

  • Pierre Garello

    (IREF - Chercheur indépendant)

Abstract
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 objectives. 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 the impact 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.

Suggested Citation

  • Mina Baliamoune-Lutz & Pierre Garello, 2011. "Tax Structure And Entrepreneurship," Post-Print halshs-00706942, HAL.
    • Handle: RePEc:hal:journl:halshs-00706942
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00706942
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    References listed on IDEAS

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    More about this item

    Keywords

    tax progressivity; nascent entrepreneurship; european firms;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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