An Estimate of Self-Employment Income Underreporting in Finland

Edvard Johansson

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)


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 self-employed 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.
Original languageEnglish
Peer-reviewed scientific journalNordic Journal of Political Economics
Issue number2
Pages (from-to)99-109
Number of pages11
Publication statusPublished - 2005
MoE publication typeA1 Journal article - refereed


  • 511 Economics
  • Consumer Economics: Empirical Analysis D120
  • Labor Demand J230
  • Tax Evasion H260


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