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An estimate of self-employment income underreporting in Finland

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  • Edvard Johansson

Abstract

This paper estimates the extent of income underreporting by the self-employed in Finland using the expenditure based approach developed by Pissarides & Weber (1989). Household spending data are for the years 1994 to 1996. Depending on how a selfemployed household is defined, the results suggest that self-employment income in Finland is underreported by some 16-40%. Since income for the self-employed is about 8 % of all incomes in Finland, the size of this part of the black economy in Finland is estimated to be about 1.3-3.2% of GDP.

Suggested Citation

  • Edvard Johansson, 2005. "An estimate of self-employment income underreporting in Finland," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 99-109.
    • Handle: RePEc:noj:journl:v:31:y:2005:p:99-109
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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