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Income taxation and job creation

URN to cite this document:
urn:nbn:de:bvb:355-epub-547207
DOI to cite this document:
10.5283/epub.54720
Röhrs, Johanna Karoline




Abstract

This paper augments the DMP model with large firms and intrafirm wage bargaining by an endogenous decision to become an entrepreneur that is based on heterogeneous entrepreneurial abilities. If workers’ wage bargaining power is not too large and the match efficiency is not too low, the decentralized market equilibrium features an inefficiently high number of entrepreneurs, because they ...

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