Taxation, Labor Market Policy and High-Impact Entrepreneurship

33 Pages Posted: 30 Mar 2010 Last revised: 22 Dec 2013

See all articles by Magnus Henrekson

Magnus Henrekson

Research Institute of Industrial Economics (IFN)

Dan Johansson

Ratio Institute

Mikael Stenkula

Research Institute of Industrial Economics (IFN)

Multiple version iconThere are 2 versions of this paper

Date Written: March 25, 2010

Abstract

Public policy affects the prevalence and performance of both productive and high-impact entrepreneurship. High-impact entrepreneurship prospers when knowledge is successfully generated and exploited in the economy. This process depends on complementary key actors who use their competencies in what we denote a competence bloc. Although variations in economic contexts make prescribing a general panacea impossible, a number of relevant policy areas that affect key actors can be identified. In this paper this is done in the areas of tax policy and labor market policy. It is shown that high and/or distortive taxes and heavy labor market regulations impinge on the creation and functioning of competence blocs, thereby reducing high-impact entrepreneurship.

Keywords: Entrepreneurship, High-growth firms, High-impact entrepreneurship, Innovation, Institutions, Labor market policy, Tax policy

JEL Classification: H32, L5, L25, M13, O31, P14

Suggested Citation

Henrekson, Magnus and Johansson, Dan and Stenkula, Mikael, Taxation, Labor Market Policy and High-Impact Entrepreneurship (March 25, 2010). IFN Working Paper No. 826, Available at SSRN: https://ssrn.com/abstract=1578219

Magnus Henrekson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

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Dan Johansson

Ratio Institute ( email )

P.O. Box 3203
SE-103 64 Stockholm
Sweden

Mikael Stenkula

Research Institute of Industrial Economics (IFN) ( email )

P.O. Box 55665
Stockholm, 102 15
Sweden

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