IDEAS home Printed from https://ideas.repec.org/p/ivi/wpasec/2011-09.html
   My bibliography  Save this paper

How different are the Spanish self-employed workers by underreporting their incomes?

Author

Listed:
  • Diego Martínez López

    () (Dpto. Economía, Mét. Cuantitativos e H.ª Econ.)

Abstract

This paper offers estimates of the underreporting of income by self-employed workers using the Spanishhousehold surveys over the period 2006-2009. We use the well-known model by Pissarides and Weber (1989)but extending its interpretation for admitting also the (lower) concealment of income by salary workers. Ourresults show that the reported income by self-employed has to be increased by about 25-30 percent to obtainthe level of income which would equal the level of underreporting by employees. Our estimates are robust tochanges in specification, endogeneity and non-linearities. Este artículo ofrece estimaciones de la ocultación de rentas por parte de los trabajadores autónomosespañoles usando Encuestas de Presupuestos Familiares en el periodo 2006-2009. Para ello empleamos elconocido modelo de Pissarides y Weber (1989), cuya interpretación extendemos para admitir también la(menor) ocultación de renta por parte de los trabajadores asalariados. Nuestros resultados muestran que larenta reconocida por los trabajadores autónomos españoles debe incrementarse entre un 25 y 30 por cientopara obtener el nivel de renta que igualaría el grado de ocultación de los empleados. Dichas estimacionesson robustas a cambios en la especificación, endogeneidad y no linealidades.

Suggested Citation

  • Diego Martínez López, 2011. "How different are the Spanish self-employed workers by underreporting their incomes?," Working Papers. Serie EC 2011-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasec:2011-09
    as

    Download full text from publisher

    File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-2011-09.pdf
    File Function: Fisrt version / Primera version, 2011
    Download Restriction: no

    References listed on IDEAS

    as
    1. Panayiota Lyssiotou & Panos Pashardes & Thanasis Stengos, 2004. "Estimates of the black economy based on consumer demand approaches," Economic Journal, Royal Economic Society, vol. 114(497), pages 622-640, July.
    2. Erik Hurst & Geng Li & Benjamin Pugsley, 2014. "Are Household Surveys Like Tax Forms? Evidence from Income Underreporting of the Self-Employed," The Review of Economics and Statistics, MIT Press, vol. 96(1), pages 19-33, March.
    3. Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, vol. 68(1), pages 115-132, July.
    4. Lindsay Tedds, 2010. "Estimating the income reporting function for the self-employed," Empirical Economics, Springer, vol. 38(3), pages 669-687, June.
    5. Torrini, Roberto, 2005. "Cross-country differences in self-employment rates: the role of institutions," Labour Economics, Elsevier, vol. 12(5), pages 661-683, October.
    6. Herb J. Schuetze, 2002. "Profiles of Tax Non-compliance Among the Self-Employed in Canada: 1969 to 1992," Canadian Public Policy, University of Toronto Press, vol. 28(2), pages 219-237, June.
    7. Alm, James & Torgler, Benno, 2006. "Culture differences and tax morale in the United States and in Europe," Journal of Economic Psychology, Elsevier, pages 224-246.
    8. Per Engstrom & Bertil Holmlund, 2009. "Tax evasion and self-employment in a high-tax country: evidence from Sweden," Applied Economics, Taylor & Francis Journals, vol. 41(19), pages 2419-2430.
    9. María Jesús Freire-Serén & Judith Panadés, 2008. "Does Tax Evasion Modify the Redistributive Effect of Tax Progressivity?," The Economic Record, The Economic Society of Australia, vol. 84(267), pages 486-495, December.
    10. 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.
    11. Ann-Sofie Kolm & Søren Bo Nielsen, 2008. "Under-reporting of Income and Labor Market Performance," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(2), pages 195-217, April.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    ocultación; encuestas familiares; consumo de comida; evasión fiscal. underreporting; household surveys; food consumption; tax evasion;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ivi:wpasec:2011-09. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Departamento de Edición). General contact details of provider: http://edirc.repec.org/data/ievages.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.