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This paper investigates the redistributive effects of taxation on occupational choice and growth. We discuss a twoñsector economy in the spirit of Romer (1990). Agents engage in one of two alternative occupations: either selfñemployment in an intermediate goods sector characterized by monopolistic competition, or employment as an ordinary worker in this sector. Entrepreneurial pro_ts are stochastic. The occupational choice under risk endogenizes the number of _rms in the intermediate goods industry. While the presence of entrepreneurial risk results in a suboptimally low number of _rms and depresses growth, nonñlinear tax schemes are partly capable of compensating the negative by effects by ex post providing a social insurance.
Many fewer women than men try the entrepreneurial way in Germany. Any explanation for this phenomenon must be complex, as many factors are relevant for its production. Among other things, it is possible to speculate on sexual/gender discrimination, on more or less voluntary decisions of women or on different starting conditions for potential entrepreneurs. We assume that these options are closely related. This paper will concentrate, though, on the third alternative. Its focus will be set on the “family field,” or more precisely, on the role of family law in hindering women from trying self-employment. The family field in Germany has not evolved in the sense of gender equality along with all other areas of society - e.g., entrepreneurship. No gender equality is possible if the family field is not part of it. This paper analyses causes and consequences for this phenomenon.
Key Words: Gender studies, Family Law, Entrepreneurship, chance equality, social sustainability