Tax progressivity and self-employment: evidence from Canadian provinces
| dc.contributor.author | Ferede, Ergete | |
| dc.date.accessioned | 2020-10-09 | |
| dc.date.accessioned | 2022-05-31T01:15:34Z | |
| dc.date.available | 2022-05-31T01:15:34Z | |
| dc.date.issued | 2013 | |
| dc.description.abstract | We examine the effects of personal income tax progressivity—in the sense of rising marginal income tax rate—on self-employment. The impacts of income tax progressivity on self-employment depend on the relative effects of taxing success and the presence of tax evasion opportunities. Empirical estimates using Canadian provincial data for the period 1979—2006 indicate that there is a negative association between income tax progressivity and self-employment. This suggests that the adverse impact of income tax on entrepreneurial risk-taking outweighs the tax evasion opportunities for the self-employed. An important implication of our results is that a reduction in income tax progressivity encourages self-employment. The empirical estimates are robust to the various sensitivity checks. | |
| dc.description.uri | https://library.macewan.ca/full-record/edsjsr/edsjsr.23360594 | |
| dc.identifier.citation | Ferede, E. (2013) “Tax Progressivity and Self-employment: Evidence from Canadian Provinces.” Small Business Economics, 40(1):141-153. | |
| dc.identifier.doi | https://doi.org/10.1007/s11187-011-9350-7 | |
| dc.identifier.uri | https://hdl.handle.net/20.500.14078/1820 | |
| dc.language | English | |
| dc.language.iso | en | |
| dc.rights | All Rights Reserved | |
| dc.subject | self-employment | |
| dc.subject | tax progressivity | |
| dc.subject | occupational choice | |
| dc.title | Tax progressivity and self-employment: evidence from Canadian provinces | en |
| dc.type | Article |