Using a large Finnish micro data set, I study how wealth influences the decision to become self-employed. The main result is that personal wealth increases the probability of a person becoming self-employed. This suggests the presence of liquidity constraints

In this paper, we improve upon the Pissarides-Weber (PW) method for estimating tax evasion among the self-employed by utilizing unique register-based consumption measures from the Swedish and Finnish mandatory registers for pleasure boats. Our main contributions are twofold: i) The PW method...