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An estimate of self-employment income underreporting in Finland

Edvard Johansson ()

Nordic Journal of Political Economy, 2005, vol. 31, 99-109

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.

JEL-codes: D12 H26 J23 (search for similar items in EconPapers)
Date: 2005
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Handle: RePEc:noj:journl:v:31:y:2005:p:99-109