Income and occupational choice responses of the self-employed to tax rate changes: Heterogeneity across reforms and income
| Autor: | Henk-Wim de Boer, Nicole Bosch |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Organizational Behavior and Human Resource Management
Economics and Econometrics Labour economics Earnings media_common.quotation_subject 05 social sciences Time allocation Wage Tax reform Tax rate Taxable income Incentive 0502 economics and business Economics Self employed 050207 economics 050205 econometrics media_common |
| Zdroj: | Labour Economics. 58:1-20 |
| ISSN: | 0927-5371 |
| DOI: | 10.1016/j.labeco.2019.02.005 |
| Popis: | This study examines the responsiveness of self-employment income and choice of self-employment rather than wage employment to tax changes in the Netherlands. We exploit several tax reforms in 1999–2012 that affected income from self-employment and wage income differently. We estimate an Elasticity of Taxable Income (ETI) of 0.3 for the self-employed. We find that the self-employed respond much stronger to tax incentives than wage earners, and did so more to the major tax reform in 2001 than to the two smaller reforms in 2005 and 2007. Further, contrary to earlier studies, we find the ETI for the self-employed to be decreasing in income. However, we find no evidence that net-of-tax earnings differentials affect occupational choice responses. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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