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Agent-based Modeling of Career Choice between the Corporate Sector and Entrepreneurship as a Result of Tax Policy

Student: Elizaveta Petukhova

Supervisor: Ivan Stankevich

Faculty: Faculty of Economic Sciences

Educational Programme: Economics (Bachelor)

Year of Graduation: 2020

Understanding the probable results of interferences in economy is significant for effective economic policy. The study examines to what extent the transfer of income from personal to corporate tax base can explain the shift of employment from private business to corporate sector. With the help of agent-based model an effort will be taken to observe the results of a tax policy on the distribution of people between corporate and private sectors. Tax policy taken as a significant factor that make an influence on agent’s choice following the analytical results from (Achkasov, Yu., Pilnik, N., 2017) that introducing income tax of entrepreneur increases the supply of labor in corporate sector and fall the wage of workers.

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