@TechReport{iza:izadps:dp14363,
            	author={Arulampalam, Wiji and Papini, Andrea},
            	title={Tax Progressivity and Self-Employment Dynamics},
            	year={2021},
	month={May},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={14363},
            	url={https://www.iza.org/publications/dp14363},
	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 to 2011. Our findings confirm theoretical predictions, and are robust to various changes to definitions and sample selections. A policy experiment simulating a flatter tax schedule in the year 2000 is found to encourage self-employment, delivering a net increase of predicted inflow into self-employment from 2.8% to 5.3%.},
	keywords={self-employment;income tax;tax progressivity;duration analysis},
            }