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Do Entrepreneurs Under-report Their Income?   Martyna Kapociute

Do Entrepreneurs Under-report Their Income?

60 страниц. 2013 год.
LAP Lambert Academic Publishing
The last decade entrepreneurship is on rise. Consequently academic researchers as well as society in general show an increased interest in self-employment. Interestingly, while examining the determinants of self-employment, it is argued that individuals choose entrepreneurship as their career path in order to avoid tax. Moreover, entrepreneurs have arguably greater scope compared to wage earners to under-report their incomes. Hence, in this context it is reasonable to think about the magnitude of self-employed income under-reporting. To measure latter, current book uses data drawn from the Household, Income and Labour Dynamics in Australia Survey (HILDA) for the years 2001 and 2003-2005. A method applied is an expenditure based approach developed by Pissarides and Weber (1989). A key idea is that under-reporting of incomes among entrepreneurs would be detectable in the data by using food expenditure equations. The investigation of self-employment income under-reporting is valuable and...
 
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