Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/260697
Authors: 
Block, Jörn
Year of Publication: 
2021
Citation: 
[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Year:] 2021 [Article No.:] 257v2
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Corporate income taxation influences the quantity and type of entrepreneurship, which in turn affects economic development. Empirical evidence shows that higher corporate income tax rates reduce business density and entrepreneurship entry rates and increase the capital size of new firms. The progressivity of tax rates increases entrepreneurship entry rates, whereas highly complex tax codes reduce them. Policymakers should understand the effects and underlying mechanisms that determine how corporate income taxation influences entrepreneurship in order to provide a favorable business environment.
Subjects: 
entrepreneurship
self-employment
start-ups
business taxes
corporate income taxes
JEL: 
L26
H25
Persistent Identifier of the first edition: 
Document Type: 
Article

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