Download File
092623-WP-The Rise of Pass-Throughs-an Empirical Investigation-Dyrda and Pugsley
Authors:
Sebastian Dyrda, University of Toronto
Benjamin Pugsley, University of Notre Dame
Abstract:
Pass-through entities have emerged as the leading U.S. business organization form in recent decades. Using comprehensive confidential administrative data, this paper highlights five core findings: (1) the rise in pass-throughs is pervasive across industries and states; (2) the pass-through share converges unconditionally across both; (3) 60% of the rise is driven by entrants’ organizational choices; (4) shifts in firm and organizational dynamics following the 1986 Tax Reform Act show continued effects through the 2000s; (5) organizational forms exhibit high persistence with little lifecycle variation. Our study implies that tax or regulatory policy changes might take decades to fully manifest.
Felecia Phillips Ollie DD (h.c.) is the inspiring leader and founder of The Equality Network LLC (TEN). With a background in coaching, travel, and a career in news, Felecia brings a unique perspective to promoting diversity and inclusion. Holding a Bachelor’s Degree in English/Communications, she is passionate about creating a more inclusive future. From graduating from Mississippi Valley State University to leading initiatives like the Washington State Department of Ecology’s Equal Employment Opportunity Program, Felecia is dedicated to making a positive impact. Join her journey on our blog as she shares insights and leads the charge for equity through The Equality Network.
