Kinship taxation as an impediment to growth experimental evidence from Kenyan microenterprises Munir Squires
By: Squires, Munir
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Material type: 
ArticleSubject(s): PAISES EN DESARROLLO | KENIA | IMPUESTOS | ECONOMIA OCULTA | ANALISIS MICROECONOMICO
In:
The Economic Journal v. 134, n. 662, August 2024, p. 2558-2579.Summary: 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.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 282/2024/662-4 (Browse shelf) | Available | OP 282/2024/662-4 |
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.
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