The impact of the tax system on self‐employment in the British construction industry

The impact of the tax system on self‐employment in the British construction industry This paper examines the impact of government taxation policy on self‐employment as the preferred form of job tenure in the British construction industry. It analyses the rapid growth in self‐employment over the period 1970‐1996 in the context of a very benign tax regime. It shows how self‐employment has grown far more rapidly in construction than in other economic sectors and also how British construction has more self‐employment than its European counterparts. The role of financial factors, especially taxation, in the decisions of companies to use self‐employed workers and in workers themselves opting for self‐employed status, is identified. Recent changes in the approach of taxation authorities towards construction workers are described and the broad impact of such measures on the propensity to self‐employment is outlined. An economic model is specified for explaining construction self‐employment in terms of taxation and other economic determinants and the empirical results of applying the model to annual data for the period 1970 to 1999 are reported. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Manpower Emerald Publishing

The impact of the tax system on self‐employment in the British construction industry

Loading next page...
 
/lp/emerald-publishing/the-impact-of-the-tax-system-on-self-employment-in-the-british-9PjGI0gtEz
Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
0143-7720
DOI
10.1108/01437720010379501
Publisher site
See Article on Publisher Site

Abstract

This paper examines the impact of government taxation policy on self‐employment as the preferred form of job tenure in the British construction industry. It analyses the rapid growth in self‐employment over the period 1970‐1996 in the context of a very benign tax regime. It shows how self‐employment has grown far more rapidly in construction than in other economic sectors and also how British construction has more self‐employment than its European counterparts. The role of financial factors, especially taxation, in the decisions of companies to use self‐employed workers and in workers themselves opting for self‐employed status, is identified. Recent changes in the approach of taxation authorities towards construction workers are described and the broad impact of such measures on the propensity to self‐employment is outlined. An economic model is specified for explaining construction self‐employment in terms of taxation and other economic determinants and the empirical results of applying the model to annual data for the period 1970 to 1999 are reported.

Journal

International Journal of ManpowerEmerald Publishing

Published: Dec 1, 2000

Keywords: Taxation; Employment; Construction industry; United Kingdom

References

  • Dynamic Econometrics
    Hendry, D.F
  • The relative earnings from self and paid employment: a time series analysis for the UK
    Robson, M.T

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off