 Facts and figures about UK taxes, benefits and public spending.
Income distribution, poverty and inequality.
Analysing government fiscal forecasts and tax and spending.
Analysis of the fiscal choices an independent Scotland would face.
Case studies that give a flavour of the areas where IFS research has an impact on society.
Reforming the tax system for the 21st century.
A peer-reviewed quarterly journal publishing articles by academics and practitioners.
|
Type: Journal Articles Authors: Alice Mesnard and Martin Ravallion
Published in: Economica
Volume, issue, pages: Vol. 73, Issue 291, 2006.
Various theoretical models have postulated nonlinearities in the wealth effect on self-employment stemming from start-up costs and / or liquidity constraints. Nonlinearity implies that the extent of entrepreneurial activity in an economy depends on the distribution of wealth, though in potentially complex ways. To test for nonlinearities, we estimate both a non-parametric linear probability model and a parametric nonlinear model of the choice to be self employed amongst return migrants in Tunisia. Controls for heterogeneity are included, and tests are made for selection bias and separability between wealth and the controls. The relationship between the probability of starting up a business and savings repatriated at return is concave for almost all the range of our data, though we find weak evidence of a convex relationship at very low wealth levels. Our results indicate that the aggregate self-employment rate is an increasing function of aggregate wealth, but a decreasing function of wealth inequality. Search |
|
|
|
© The Institute for Fiscal Studies
Limited by Guarantee,Registered in England: 954616 7 Ridgmount Street London WC1E 7AE Registered Charity: 258815 VAT no: GB 394 5830 17 Website design by Pynk and Fluffy |
||||||
