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 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 language | English |
|---|---|
| Peer-reviewed scientific journal | Nordic Journal of Political Economics |
| Volume | 31 |
| Issue number | 2 |
| Pages (from-to) | 99-109 |
| Number of pages | 11 |
| ISSN | 0345-8555 |
| Publication status | Published - 2005 |
| MoE publication type | A1 Journal article - refereed |
Keywords
- 511 Economics
- Consumer Economics: Empirical Analysis D120
- Labor Demand J230
- Tax Evasion H260