Working Papers
Working Paper No. 1547
Tax Incentives, Minimum Capital Requirements, and the Incorporation Decision
What leads self-employed entrepreneurs to incorporate? I examine how tax incentives interact with the cost of incorporation to answer this question. I exploit the abolition of minimum capital requirem…
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Working Paper No. 1546
HYBRIT: A Hubristic Hydrogen-Based Steel Project
This study critically examines HYBRIT (Hydrogen Breakthrough Ironmaking Technology), a Swedish flagship project—led by the government-owned iron ore company LKAB—to produce fossil-free sponge iron usi…
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Working Paper No. 1543
Must Capital Income Increase Long-Term Inequality? Evidence from Sweden 1991–2021
Capital income is known to increase income inequality when measured on an annual basis, but the role of personal capital income in long-run inequality is rarely studied. Theoretically, capital income…
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Working Paper No. 1540
Income and Employment for Immigrants and Immigrant-Dense Neighbourhoods in Sweden 1998–2022
This paper examines income and employment outcomes for immigrants in Sweden’s most immigrant-dense neighbourhoods between 1998 and 2022. While relative employment among immigrants has improved, relati…
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Working Paper No. 1539
Tax-Motivated Firm Splitting
How do corporate tax systems shape the boundaries of the firm? This paper shows that nonlinear corporate income taxation can distort firms’ organizational structures by inducing tax-motivated firm spl…
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Working Paper No. 1538
Ability, Not Heritage: Why Expanding University Access Often Fails to Narrow Intergenerational Educational Gaps
Many countries have established new local colleges to increase access to education for disadvantaged populations. However, many of these expansions have not reduced educational inequality. Drawing on…
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Working Paper No. 1533
Managerial Origin and Firms’ Demand for Labor Migrants: Evidence from Sweden
This paper examines how managerial background influences firms’ use of labor migration. Using Swedish data, we analyze whether firms led by foreign-born managers are more likely to apply for work perm…
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Working Paper No. 1529
Successful Entrepreneurs Come from the Top of the Earned Income Distribution
Identifying high growth startups ex-ante and fostering their success is an important policy challenge. Using Swedish registry data, we show that previous labor market earnings of entrepreneurs is a si…
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Working Paper No. 1526
Why a Tariff War May Not Decrease Global CO2 Emissions
It has been suggested that an intensified trade war between China and the US could reduce CO2 emissions associated with exports. We develop an export-greenfield-endogenous merger model, showing t…
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Working Paper No. 1523
Is Green Industrial Policy the Right Choice for the EU?
This paper critically evaluates the European Union’s shift towards large-scale green industrial policies. It highlights the risks of government-directed resource allocation, such as inefficiencies, mi…
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Working Paper No. 1522
The Role of Specialized Knowledge and ‘Know-How’ for Firm Productivity: Evidence from the Equine Industry
Using matched employer–employee data, we investigate the influence of human capital inputs on firm productivity. Several variables are used to measure firms’ access to skilled labor, such as their sha…
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Working Paper No. 1518
Coup d’États, Institutional Change, and Productivity
Understanding the consequences and recovery for countries hit by adverse national events such as political crises is central to understanding long-run development dynamics. Utilizing the Coleman boat…
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Working Paper No. 1517
Pattern Bargaining as a Means to Coordinate Wages in the Nordic Countries
The various form of pattern bargaining with manufacturing, as representative of the tradables sector, deciding the norm for wage increases in the Nordic countries are reviewed. This form of bargaining…
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Working Paper No. 1514
Neo-Schumpeterian Growth Theory: Missing Entrepreneurs Results in Incomplete Policy Advice
The neo-Schumpeterian growth models, which appeared in the early 1990s, have ostensibly reintroduced the entrepreneur into mainstream growth theory. However, we show that by ignoring genuine uncertain…
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Working Paper No. 1507
The Price of Exclusion: Coalition Formation in the Shadow of Rising Radical Right
The increasing electoral success of populist radical-right parties poses a significant challenge to established political parties in Western democracies. While mainstream parties often maintain a poli…
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Working Paper No. 1506
The Effect of an Anonymous Grading Reform for Male and Female University Students
This paper presents evidence that anonymous grading benefits female university students based on a university-wide reform. Female grades improve by 0.04-0.06 standard deviations relative to males, wit…
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Working Paper No. 1504
On Credibility and Causality in Economics: A Critical Appraisal
Borrowing ideas from the medical sciences, we propose tentative guidelines for reliable causal inferences that cover aspects related to both the study itself and its fit with background knowledge. We…
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Working Paper No. 1503
Heterogeneity and Persistence in Tax Responsiveness: Evidence from Owner-Managed Companies
We study responsiveness of owner-managed companies to a corporate income tax kink using Dutch tax records linking firms to their owners. The corporate taxable income elasticity (CETI) is 0.08, but tax…
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Working Paper No. 1489
Incentivizing Innovative Entrepreneurship in Quasi-Markets: Theory and Evidence from Sweden’s Schools and Nursing Homes
This article discusses welfare quasi-markets, a promising yet under-explored area of study in entrepreneurship research. Many countries have implemented quasi-markets to enhance entrepreneurship and i…
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Working Paper No. 1488
Intergenerational Redistribution in a Pay-as-you-go Pension System
This study provides a comprehensive analysis of the generational wealth transfer within Sweden’s public pay-as-you-go pension system introduced in 1960. Using extensive administrative registers, the p…
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Working Paper No. 1487
Self-Employment among In-Movers and Stayers in Rural Areas: Insights from Swedish Register and Survey Data
Our use of longitudinal register data combined with a unique survey allows us to offer a more comprehensive picture of rural self-employment than in previous studies. We find that self-employed in rur…
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Working Paper No. 1485
Labor Market Effects of a Youth Summer Employment Program in Sweden
We evaluate a non-targeted summer youth employment program (SYEP) for high school students aged 16–19 in Stockholm, Sweden, where public sector job offers were as good as randomly assigned. In contras…
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Working Paper No. 1484
Moonshots and the New Industrial Policy: Questioning the Mission Economy
The notion that society should be organized around large so-called missions has gained momentum in public debate, and the reemergence of active industrial policy across the world has been inspired by…
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Working Paper No. 1483
The EU’s Competitive Advantage in the 'Clean-Energy Arms Race'
The net-zero agreement on carbon emission from Paris 2015 gives a key role to fossil-free energy technologies with an expected multifold growth rate over the coming decades, when successively replacin…
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Working Paper No. 1482
The Working Capital Channel
Firms relying on working capital raise prices following monetary tightening, and this paper demonstrates that the working capital channel plays a key role in partial and general equilibrium inflation…
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Working Paper No. 1480
Type 1 Diabetes and Youth Sports in Sweden: A Field Experiment on Discrimination
This study evaluated discrimination against children with Type 1 Diabetes Mellitus (T1DM) in Swedish sports clubs through a field experiment. Two fictitious fathers sent emails to 193 top-division clu…
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Working Paper No. 1479
Investment Treaties and the Replacement of Stranded Investment
A common claim holds that investment treaties reduce the willingness of host countries to regulate foreign-owned, environmentally-stranded, investments. A counter-argument is that the treaties can yie…
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Working Paper No. 1478
Learning from Overrated Mission-Oriented Innovation Policies: Seven Takeaways
This paper integrates findings from several different case studies on Mission-Oriented Innovation Policies (MOIPs) and makes use of existing literature to briefly describe three other missions: The Wa…
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Working Paper No. 1475
From Wall Street to Work Floor: How Private Equity Buyouts Affect Workers
Private equity buyouts have sparked debates among labor unions and worker representatives on how they affect workers. This chapter provides an overview of academic evidence on how private equity buyou…
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Working Paper No. 1474
Bottom-Up Policies Trump Top-Down Missions
Mission-oriented innovation policies are becoming increasingly popular among policymakers and scholars. We maintain that these policies are based on an overly mechanistic view of innovation and econom…
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