Working Paper Series
Effects of Taxes on Youth Self-Employment and Income
Abstract: I study the link between taxes and youth self-employment.
I make use of a Swedish reform, implemented in 2007–09, which suddenly made
the payroll tax and the self-employment tax vary by age. The results
suggest that youth self-employment is insensitive to tax reductions, both
in the short run and in the somewhat longer run. I also study the effect of
the tax reductions on income. For those that are defined as self-employed,
I find positive effects on income from self-employment, and negative
effects on income from wage employment. This finding suggests that the
lower taxes caused the self-employed to reallocate time from employment to
Keywords: Youth unemployment; Self-employment tax; Tax subsidy; Self-employment; (follow links to similar papers)
JEL-Codes: H25; H32; J23; J38; J68; (follow links to similar papers)
41 pages, March 10, 2016
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom