Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Taxation and Self-Employment

Abstract : In this paper I study the relation between self-employment and the tax rates on wages and on self-employment income. Using variation in the statutory tax rates across countries, industries, and occupations, I find that while the share of self-employed is strongly positively correlated with the tax rate on wage income, it is weakly negatively correlated with the tax rate on self-employed income. The asymmetry between the effects of the tax rates suggests that those who choose self-employment partly do so in order to evade taxes. This extensive margin of adjustment – between employment and self-employment – should be taken into account when considering the effects of tax rates on labor income, on taxable income and on welfare.
Document type :
Preprints, Working Papers, ...
Complete list of metadata

https://hal-sciencespo.archives-ouvertes.fr/hal-03393144
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Thursday, October 21, 2021 - 9:40:30 PM
Last modification on : Monday, March 21, 2022 - 2:47:48 PM
Long-term archiving on: : Saturday, January 22, 2022 - 9:17:23 PM

File

2018-barany-taxation-and-self-...
Publisher files allowed on an open archive

Licence


Distributed under a Creative Commons Attribution - NoDerivatives 4.0 International License

Identifiers

Citation

Zsofia Barany. Taxation and Self-Employment. 2018. ⟨hal-03393144⟩

Share

Metrics

Record views

8

Files downloads

5