Title

Replication data for: Corporate Income Tax, Legal Form of Organization, and Employment

Document Type

Data

DOI

10.3886/e114094v1

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

Source Link

https://www.openicpsr.org/openicpsr/project/114094/version/V1/view

Version

1

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