Risky earnings , taxation and entrepreneurial choice : a microeconometric model for Germany

  • Frank Fossen, Frank M. Fossen, DIW Berlin
  • Published 2007

Abstract

Which role do individual income prospects play in the decision to be an entrepreneur rather than an employee? In a model of occupational choice, higher expected after-tax earnings attract people to self-employment, while more risky net earnings deter risk-averse individuals. In this paper I analyse the expected value and variance of income in self… (More)

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