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Taxation, Labor Market Policy and High-Impact Entrepreneurship

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  • Magnus Henrekson

    ()

  • Dan Johansson

    ()

  • Mikael Stenkula

    ()

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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  • Magnus Henrekson & Dan Johansson & Mikael Stenkula, 2010. "Taxation, Labor Market Policy and High-Impact Entrepreneurship," Journal of Industry, Competition and Trade, Springer, vol. 10(3), pages 275-296, September.
    • Handle: RePEc:kap:jincot:v:10:y:2010:i:3:p:275-296
    DOI: 10.1007/s10842-010-0081-2
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    Cited by:

    1. repec:eee:jiaata:v:29:y:2017:i:c:p:14-31 is not listed on IDEAS
    2. Mikael Stenkula, 2012. "Taxation and entrepreneurship in a welfare state," Small Business Economics, Springer, vol. 39(1), pages 77-97, July.
    3. Josh Lerner & Joacim Tåg, 2013. "Institutions and venture capital," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 153-182, February.
    4. Jeffrey Overall, 2017. "Practice what you preach: the failure of the welfare state and the discovery of total equality through capitalism," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 13(1/2), pages 69-85.
    5. Neil Lee, 2014. "What holds back high-growth firms? Evidence from UK SMEs," Small Business Economics, Springer, vol. 43(1), pages 183-195, June.
    6. Estrin, Saul & Korosteleva, Julia & Mickiewicz, Tomasz, 2013. "Which institutions encourage entrepreneurial growth aspirations?," Journal of Business Venturing, Elsevier, vol. 28(4), pages 564-580.
    7. repec:bla:chinae:v:26:y:2018:i:3:p:88-108 is not listed on IDEAS
    8. Magnus Henrekson, 2014. "How labor market institutions affect job creation and productivity growth," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-38, May.
    9. Stefan Fölster & Li Jansson & Anton Nyrenström Gidehag, 2016. "The effect of local business climate on employment," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing, vol. 5(1), pages 2-24, April.
    10. Johansson, Dan & Stenkula, Mikael & Wykman, Niklas, 2018. "The Taxation of Private Foundations in Sweden 1862–2018," Working Paper Series 1245, Research Institute of Industrial Economics, revised 02 Oct 2019.
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    12. repec:kap:sbusec:v:51:y:2018:i:2:d:10.1007_s11187-018-0011-y is not listed on IDEAS
    13. Johansson, Dan & Stenkula, Mikael & Wykman, Niklas, 2018. "The Rise of Private Foundations as Owners of Swedish Industry: The Role of Tax Incentives 1862–2018," Working Papers 2018:10, Örebro University, School of Business.
    14. Lucio Fuentelsaz & Consuelo González-Gil & Juan P. Maicas, 2015. "What determines entepreneurial failure: taking advantage of the institutional context," Documentos de Trabajo dt2015-05, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    15. repec:kap:sbusec:v:51:y:2018:i:2:d:10.1007_s11187-018-0010-z is not listed on IDEAS
    16. Maksim Belitski & Farzana Chowdhury & Sameeksha Desai, 2016. "Taxes, corruption, and entry," Small Business Economics, Springer, vol. 47(1), pages 201-216, June.

    More about this item

    Keywords

    entrepreneurship; gazelles; high-growth firms; high-impact entrepreneurship; innovation; institutions; labor market policy; tax policy; H32; L5; L25; M13; O31; P14;

    JEL classification:

    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • P14 - Economic Systems - - Capitalist Systems - - - Property Rights

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