Title
Replication data for: Corporate Income Tax, Legal Form of Organization, and Employment
Document Type
Data
DOI
10.3886/e114094
Publication Date
1-1-2018
Description
A dynamic stochastic occupational choice model with heterogeneous agents is developed to evaluate the impact of a corporate income tax reduction on employment. In this framework, the key margin is the endogenous entrepreneurial choice of legal form of organization. A reduction in the corporate income tax burden encourages adoption of the C corporation legal form, which reduces capital constraints on firms. Improved capital reallocation increases overall productive efficiency in the economy and therefore expands the labor market. Relative to the benchmark economy, a corporate income tax cut can reduce the non-employment rate by up to 7 percent.
Publisher
ICPSR
Recommended Citation
Schlagenhauf, Don; Qi, Shi; Chen, Daphne (2018), "Replication data for: Corporate Income Tax, Legal Form of Organization, and Employment", ICPSR, doi: 10.3886/e114094
https://doi.org/10.3886/e114094
Source Link
https://www.openicpsr.org/openicpsr/project/114094
Version
V0
