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Taxation, Labor Market Policy and High-Impact Entrepreneurship

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  • Henrekson, Magnus

    ()
    (Research Institute of Industrial Economics (IFN))

  • Johansson, Dan

    ()
    (Ratio)

  • Stenkula, Mikael

    ()
    (Research Institute of Industrial Economics (IFN))

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 ac-tors 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.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 826.

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Length: 33 pages
Date of creation: 23 Mar 2010
Date of revision:
Publication status: Published as Henrekson, Magnus, Dan Johansson and Mikael Stenkula, 'Taxation, Labor Market Policy and High-Impact Entrepreneurship' in Journal of Industry, Competition and Trade, 2010, pages 275-296.
Handle: RePEc:hhs:iuiwop:0826

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

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Cited by:
  1. Lerner, Josh & Tåg, Joacim, 2013. "Institutions and Venture Capital," Working Papers 2012:17, Swedish Entrepreneurship Forum.
  2. Estrin, Saul & Korosteleva, Julia & Mickiewicz, Tomasz, 2013. "Which institutions encourage entrepreneurial growth aspirations?," Journal of Business Venturing, Elsevier, vol. 28(4), pages 564-580.
  3. Mikael Stenkula, 2012. "Taxation and entrepreneurship in a welfare state," Small Business Economics, Springer, vol. 39(1), pages 77-97, July.
  4. Neil Lee, 2014. "What holds back high-growth firms? Evidence from UK SMEs," Small Business Economics, Springer, vol. 43(1), pages 183-195, June.

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