The effects of the 1986 and 1993 tax reforms on self-employment
By: Kevin Moore.
Series: Finance and economics discussion series ;; 2004-05; Finance and economics discussion series (Online) ;; 2004-05.
Publisher: Federal Reserve Board
Published: 2004
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "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"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 7/9/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.