TY  - RPRT
        AU  - Arulampalam, Wiji
AU  - Papini, Andrea
        TI  - Tax Progressivity and Self-Employment Dynamics
        PY  - 2021/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14363
        UR  - https://www.iza.org/publications/dp14363
        AB  - 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%.
        KW  - self-employment
KW  - income tax
KW  - tax progressivity
KW  - duration analysis
        ER  -