Tax Progressivity and Entrepreneurial Dynamics

Authors

Orkhan Nadirov, Tomas Bata University in Zlin
Bruce Dehning, Chapman UniversityFollow

Document Type

Article

Publication Date

4-28-2020

Abstract

This study examines how tax progressivity affects entrepreneurial dynamics in 18 countries. The results show that increased downside progressivity has a positive influence on the transition rate from nascent entrepreneurship to established business ownership. In addition, only downside progressivity calculated using marginal tax rates is related to the transition ratio, implying that it is marginal tax rates, and not average tax rates, that are used in the entrepreneurial decision-making process. This paper contributes to our understanding of entrepreneurial dynamics and the effect of tax progressivity on the transition from nascent entrepreneurship to established business ownership.

Comments

This article was originally published in Sustainability, volume 12, in 2020. https://doi.org/10.3390/su12093584

Recommended Citation

Nadirov, O., & Dehning, B. (2020). Tax progressivity and entrepreneurial dynamics. Sustainability, 12, 3584. https://doi.org/10.3390/su12093584

Peer Reviewed

1

Copyright

The authors

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 License.