Squires, Munir
Kinship taxation as an impediment to growth experimental evidence from Kenyan microenterprises / Munir Squires
Bibliografía
This paper documents strong pressure to share income faced by entrepreneurs in a developing country setting. This ‘kinship tax’ can distort productive decisions, including investment. A lab experiment with 361 Kenyan entrepreneurs reveals that a third of them face distortionary pressure to share income. This kinship tax is higher for men, and increasing in entrepreneurial ability. Using a pre-existing randomised cash transfer experiment, I find that only male entrepreneurs who do not face distortionary kinship taxation invest these transfers. Imposing some parametric assumptions, I estimate that kinship taxation decreases aggregate productivity among firms in this sample by one-quarter.
PAISES EN DESARROLLO
KENIA
IMPUESTOS
ECONOMIA OCULTA
ANALISIS MICROECONOMICO
The Economic Journal 0013-0133 [papel] v. 134, n. 662, August 2024, p. 2558-2579.
Kinship taxation as an impediment to growth experimental evidence from Kenyan microenterprises / Munir Squires
Bibliografía
This paper documents strong pressure to share income faced by entrepreneurs in a developing country setting. This ‘kinship tax’ can distort productive decisions, including investment. A lab experiment with 361 Kenyan entrepreneurs reveals that a third of them face distortionary pressure to share income. This kinship tax is higher for men, and increasing in entrepreneurial ability. Using a pre-existing randomised cash transfer experiment, I find that only male entrepreneurs who do not face distortionary kinship taxation invest these transfers. Imposing some parametric assumptions, I estimate that kinship taxation decreases aggregate productivity among firms in this sample by one-quarter.
PAISES EN DESARROLLO
KENIA
IMPUESTOS
ECONOMIA OCULTA
ANALISIS MICROECONOMICO
The Economic Journal 0013-0133 [papel] v. 134, n. 662, August 2024, p. 2558-2579.