Effects of taxes on youth self-employment and income

Arbeitspapier

I study the link between taxes and youth self-employment. I make use of a Swedish reform, implemented in 2007-09, which suddenly made the payroll tax and the self-employment tax vary by age. The results suggest that youth self-employment is insensitive to tax reductions, both in the short run and in the somewhat longer run. I also study the effect of the tax reductions on income. For those that are defined as self-employed, I find positive effects on income from self-employment, and negative effects on income from wage employment. This finding suggests that the lower taxes caused the self-employed to reallocate time from employment to self-employment.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 1117

Classification and Topics

• Classification: Wirtschaft ; Business Taxes and Subsidies including sales and value-added (VAT) ; Fiscal Policies and Behavior of Economic Agents: Firm ; Labor Demand ; Wages, Compensation, and Labor Costs: Public Policy ; Mobility, Unemployment, and Vacancies: Public Policy
• Subject: Youth unemployment ; Self-employment tax ; Tax subsidy ; Self-employment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Egebark, Johan
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/175054
• Last update: 10.03.2025, 11:41 AM CET