Taxation, Labor Market Policy and High-Impact Entrepreneurship

22 Pages Posted: 30 Sep 2013

See all articles by Magnus Henrekson

Magnus Henrekson

Research Institute of Industrial Economics (IFN)

Dan Johansson

Örebro University School of Business

Mikael Stenkula

Research Institute of Industrial Economics (IFN)

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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 distorted taxes and heavy labor market regulations impinge on the creation and functioning of competence blocs, thereby reducing high-impact entrepreneurship.

Keywords: entrepreneurship, gazelles, 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. Journal of Industry, Competition and Trade, Vol. 10, No. 3-4, 2010, Available at SSRN: https://ssrn.com/abstract=2333520

Magnus Henrekson

Research Institute of Industrial Economics (IFN) ( email )

P.O. Box 55665
Grevgatan 34
Stockholm, SE-10215
Sweden
+46-8-6654502 (Phone)
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HOME PAGE: http://www.ifn.se/mh

Dan Johansson (Contact Author)

Örebro University School of Business ( email )

School of Business
Örebro, SE-70182
Sweden

Mikael Stenkula

Research Institute of Industrial Economics (IFN) ( email )

P.O. Box 55665
Stockholm, 102 15
Sweden

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