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dc.contributor.authorFossen, Frank M.en_US
dc.contributor.authorSteiner, Viktoren_US
dc.date.accessioned2009-01-28T15:47:23Z-
dc.date.available2009-01-28T15:47:23Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/18475-
dc.description.abstractEntrepreneurial activity is often regarded as an engine for economic growth and job creation. Through tax policy, governments possess a potential lever to influence the decisions of economic agents to start and close small businesses. In Germany, the top marginal income tax rates were reduced exclusively for entrepreneurs in 1994 and 1999/2000. These tax reforms provided two naturally defined control groups that enable us to exploit the legislation changes as ?natural experiments?. First, the tax rate reductions did not apply to freelance professionals (Freiberufler), and second, entrepreneurs with earnings below a certain threshold were not affected. Using data from two different sources, the SOEP and the Mikrozensus (LFS), we analyse the effect of the tax cuts on transitions into and out of self-employment and on the rate of self-employment. We apply a ?difference-in-difference-in-difference? estimation technique within a discrete time hazard rate model. The results indicate that the decrease in tax rates did not have a significant effect on the self-employment decision.en_US
dc.language.isoengen_US
dc.publisherDeutsches Institut für Wirtschaftsforschung (DIW) Berlinen_US
dc.relation.ispartofseriesDIW-Diskussionspapiere 582en_US
dc.subject.jelJ23en_US
dc.subject.jelH25en_US
dc.subject.jelH24en_US
dc.subject.ddc330en_US
dc.subject.keywordTaxationen_US
dc.subject.keywordentrepreneurshipen_US
dc.subject.keywordnatural experimenten_US
dc.subject.keyworddifference-in-difference-in-difference estimationen_US
dc.titleIncome Taxes and Entrepreneurial Choice: Empirical Evidence from Germanyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn511480903en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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DIW-Diskussionspapiere

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