In some classes of models, taxes at the owner level are "neutral" and have no effect on firm activity. However, this tax neutrality is sensitive to assumptions and no longer holds in more complex models. We review recent research that incorporates greater complexity in studying the link between...

We investigate how personal income taxes affect the portfolio share of personal wealth that entrepreneurs invest in their own business. In a reformulation of the standard portfolio choice model that allows for underreporting of private business income to tax authorities, we show that a fall in...

We investigate how personal income taxes affect the portfolio share of personal wealth that entrepreneurs invest in their own business. In a reformulation of the standard portfolio choice model that allows for underreporting of private business income to tax authorities, we show that a fall in...

This article evaluates critically the competing explanations for informal sector entrepreneurship that read such endeavours to result from either ‘exclusion' from state benefits and the circuits of the modern economy or the voluntary ‘exit' of workers from formal institutions. Reporting...

This paper evaluates critically the popular structuralist representation that those operating in the informal sector are marginalized populations working as dependent employees out of economic necessity and in the absence of alternative means of livelihood. Reporting an empirical study of 1,518...

Drawing on Baumol’s concepts of productive, unproductive and destructive entrepreneurship and relevant amendments, this book develops a conceptual framework which allows operationalising the concepts for empirical assessment. Using data from a longitudinal survey, the author further makes one...

How many entrepreneurs start-up their business ventures conducting some or all of their trade in the informal economy? The aim of this paper is to answer this key question that has been seldom addressed using data from 600 face-to-face structured interviews conducted in Ukraine in late 2005 and...

To understand entrepreneurs' motivations, it has become increasingly common to distinguish between those driven by necessity (or pushed) and those driven by opportunity (or pulled) into entrepreneurship. Until now, entrepreneurs operating wholly or partially in the informal economy have been...

Mirroring the representation of informal workers in a third world context as displaying entrepreneurial qualities, recent years have witnessed the emergence of a similar view of the informal sector in western nations as a hidden enterprise culture. Until now, however, few attempts have been made...

In recent decades, the field of entrepreneurship studies has become increasingly interested in the relationship between entrepreneurship and the informal economy. This paper reviews this burgeoning sub-field of entrepreneurship studies that recognizes how entrepreneurs do not always conduct...