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The role of transitory events in shaping subjective well-being among the self-employed: Finland’s tax day effect

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  • Patel, Pankaj C.

Abstract

Drawing on relative deprivation theory and adaptation theory, this study examines how Finland’s annual tax day, which publicly discloses citizens’ taxable income, affects the subjective well-being of self-employed individuals across income levels. Utilizing a regression discontinuity design with European Social Survey data, we analyze well-being before and after this transitory event. Our findings reveal asymmetric effects: low-income self-employed individuals experience significant negative impacts on well-being, while high-income self-employed and wage earners show negligible effects. The results demonstrate how institutionalized income transparency somewhat disrupts adaptation processes and intensifies unfavorable social comparisons, particularly for lower-income entrepreneurs. These results highlight the need to consider the stability of the self-employment-wellbeing relationship and highlight certain entrepreneurial subgroups’ vulnerability to external informational shocks.

Suggested Citation

  • Patel, Pankaj C., 2026. "The role of transitory events in shaping subjective well-being among the self-employed: Finland’s tax day effect," Journal of Business Research, Elsevier, vol. 204(C).
    • Handle: RePEc:eee:jbrese:v:204:y:2026:i:c:s0148296325006381
    DOI: 10.1016/j.jbusres.2025.115815
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