Open Daily: 10am - 10pm | Alley door pickup 10am - 7pm 3038 Hennepin Ave Minneapolis, MN
612-822-4611

  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Finance and Economics Discussion Series: The Effects of the 1986 and 1993 Tax Reforms on Self-Employment

Finance and Economics Discussion Series: The Effects of the 1986 and 1993 Tax Reforms on Self-Employment

United States Federal Reserve Board
Moore, Kevin

Paperback

General Political Science

ISBN10: 1288713460
ISBN13: 9781288713462
Publisher: Bibliogov
Published: Feb 6 2013
Pages: 50
Weight: 0.24
Height: 0.10 Width: 7.44 Depth: 9.69
Language: English
This paper adds a new dimension to the literature that uses individual level data to assess the effects of tax policy on self-employment. Specifically, this study uses repeated cross-section data from the Surveys of Consumer Finances (SCF) against the background of the tax reforms of 1986 and 1993 to gauge the influence of taxes on self-employment. Using the 1986 and 1993 tax rate reforms as natural experiments allows for the identification of the effect of taxes on the choice to become self-employed. The findings of this paper indicate that marginal and average tax rates are negatively related to the propensity to become self-employed. However, these effects are only significant for the 1986 tax reforms and are sensitive to the model specification. Other factors, such as education, industry, wealth, and attitude toward risks, are consistently more important influences on the choice to become self-employed.

Also in

General Political Science

View All