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Publications (10 of 39) Show all publications
Engström, P., Hagen, J. & Johansson, E. (2023). Estimating tax noncompliance among the self-employed: evidence from pleasure boat registers. Small Business Economics, 61, 1747-1771
Open this publication in new window or tab >>Estimating tax noncompliance among the self-employed: evidence from pleasure boat registers
2023 (English)In: Small Business Economics, ISSN 0921-898X, E-ISSN 1573-0913, Vol. 61, p. 1747-1771Article in journal (Refereed) Published
Abstract [en]

We improve upon the Pissarides-Weber 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. This allows for more detailed and statistically powered analyses than survey-based applications. Our results indicate overall levels of hidden incomes that are in line with previous studies. However, the functional form analysis shows that the estimated sizes of underreporting in absolute monetary amounts are almost constant over reported income levels, whereas previous studies have assumed that the underreporting is proportional to income. The results from the preference analysis—in which we compare households that will become self-employed in the near future with households that will remain wage earners—are mixed; the two types of households have insignificant (Finland) or economically small (Sweden) preference differences. However, when we use engine power as a price proxy, the preference differences are larger in both countries.

Place, publisher, year, edition, pages
Springer, 2023
Keywords
Engel curve, Income underreporting, Pleasure boats, Register data, Self-employment, Tax noncompliance
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-60166 (URN)10.1007/s11187-023-00749-3 (DOI)000963717800003 ()2-s2.0-85151549581 (Scopus ID)HOA;;875761 (Local ID)HOA;;875761 (Archive number)HOA;;875761 (OAI)
Note

We are grateful to Spencer Bastani, Janya Hamaaki, Julie Brun Bjørkheim, and seminar participants at IIPF 2020, Jönköping University, University of Turku, the Finnish Tax Administration, and the Swedish Tax Agency, and two anonymous referees and the editor (Thomas Åstebro) for helpful comments. We acknowledge financial support from the Nordic Tax Research Council and Stiftelsen Inger, Arne och Astrid Oscarssons Donationsfond.

Available from: 2023-04-17 Created: 2023-04-17 Last updated: 2024-01-15Bibliographically approved
Backman, M., Hagen, J., Kekezi, O., Naldi, L. & Wallin, T. (2023). In the Eye of the Storm: Entrepreneurs and Well-Being During the COVID-19 Crisis. Entrepreneurship: Theory & Practice, 47(3), 751-787
Open this publication in new window or tab >>In the Eye of the Storm: Entrepreneurs and Well-Being During the COVID-19 Crisis
Show others...
2023 (English)In: Entrepreneurship: Theory & Practice, ISSN 1042-2587, E-ISSN 1540-6520, Vol. 47, no 3, p. 751-787Article in journal (Refereed) Published
Abstract [en]

In this paper, we examine the impact of the COVID-19 pandemic on the well-being of entrepreneurs. We surveyed a representative sample of Swedish entrepreneurs and wage employees at different stages of the COVID-19 pandemic. The survey data, combined with register data, show that the COVID-19 outbreak has a negative effect on the well-being of entrepreneurs in terms of increased perceived stress. However, this negative effect is weaker for entrepreneurs who feel younger than their chronological age and entrepreneurs who are geographically distant from the epicenter of the crisis. 

Place, publisher, year, edition, pages
Sage Publications, 2023
Keywords
crisis, entrepreneurs, location, subjective age, well-being
National Category
Business Administration
Identifiers
urn:nbn:se:hj:diva-55494 (URN)10.1177/10422587211057028 (DOI)000731000100001 ()2-s2.0-85121421450 (Scopus ID)HOA;;1625914 (Local ID)HOA;;1625914 (Archive number)HOA;;1625914 (OAI)
Funder
Marianne and Marcus Wallenberg Foundation, MMW 2018.0049
Available from: 2022-01-10 Created: 2022-01-10 Last updated: 2023-05-16Bibliographically approved
Hagen, J., Malisa, A. & Post, T. (2023). Trading behavior of Swedish retirement investors during the COVID-19 pandemic. Review of Behavioral Finance, 15(5), 694-708
Open this publication in new window or tab >>Trading behavior of Swedish retirement investors during the COVID-19 pandemic
2023 (English)In: Review of Behavioral Finance, ISSN 1940-5979, Vol. 15, no 5, p. 694-708Article in journal (Refereed) Published
Abstract [en]

Purpose: How did investors in the Swedish Premium Pension System (PPS) react to the stock market shock ignited by the COVID-19 pandemic?

Design/methodology/approach: The authors use fund-level data from the Swedish Pensions Agency on investment choices in the PPS. For each fund, the authors use monthly information on the number of investors and holdings' market value up to November 2020. The authors also use information on the total number of portfolio changes per day. For analyzing whether PPS investors reacted to the pandemic with claiming their pension, the authors use monthly data on the number of investors of a certain age group who initiate their public pension payment.

Findings: Trades more than doubled, and shifted capital from equity funds to low risk interest funds. In economic terms, however, trading stayed at low levels–less than two percent of investors traded in March 2020 and there was no effect on pension withdrawals. The increased trading during the market tumult was disproportionately concentrated among investors in the top of the pension capital distribution.

Research limitations/implications: With fund-level data, the authors cannot investigate what in particular made retirement investors stay calm in the midst of a severe market decline. Either, those investors have a long-term investment horizon as they save for their pension or particular features of the system's choice architecture induce inertia and discourage from trading. The sub-group analyses are more consistent with the explanation that PPS-induced inertia is responsible for the relatively small increase in trading activity, but future research could exploit individual level data to explore this in more detail.

Practical implications: The often-criticized PPS choice architecture provided positive side effects in times of a severe market shock by shielding retail investors from committing trading mistakes when trying to outsmart the market.

Originality/value: The study complements previous evidence on the effects of COVID-19 on investor activity. The small response of PPS investors to COVID-19 is in line with earlier US findings on 401(k) accounts during the 2007 financial crisis (Tang et al., 2012) and industry reports about the COVID-19 period (see, e.g. Mitchell, 2020). The authors find no effects at all on public pension withdrawals in Sweden, while evidence from US 401(k) plans indicates a small share of workers taking COVID-related early withdrawals.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2023
Keywords
COVID-19 pandemic, Financial crisis, Retirement investors, Risk-taking behavior, Trading behavior
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-56181 (URN)10.1108/RBF-09-2021-0183 (DOI)000778053300001 ()2-s2.0-85127279527 (Scopus ID)HOA;intsam;806210 (Local ID)HOA;intsam;806210 (Archive number)HOA;intsam;806210 (OAI)
Available from: 2022-04-11 Created: 2022-04-11 Last updated: 2023-09-01Bibliographically approved
Hagen, J. & Malmberg, H. (2022). A cofinancing model for disability insurance and local government employers. Social Policy & Administration, 56(4), 661-680
Open this publication in new window or tab >>A cofinancing model for disability insurance and local government employers
2022 (English)In: Social Policy & Administration, ISSN 0144-5596, E-ISSN 1467-9515, Vol. 56, no 4, p. 661-680Article in journal (Refereed) Published
Abstract [en]

Employer cofinancing in disability insurance (DI) systems aims to reduce the inflow to DI by making employers internalise their DI costs. We evaluate a cofinancing system for the local government sector in Sweden inspired by the literature on yardstick competition. In the system, local governments are responsible for the DI of their employees, while being compensated by the central government for their expected DI payments. The arrangement essentially eliminates the large fiscal externalities associated with DI. Also, the arrangement can be implemented within current administrative setups, and the design credibly ensures that no extra costs are imposed on the local government sector in the aggregate. Drawing on Swedish employer-employee matched data, we show that the net transfers implied by the scheme are quite large as a share of DI payments, but sufficiently small as a share of tax payments to not be onerous, and that they only marginally increase regional inequality.

Place, publisher, year, edition, pages
John Wiley & Sons, 2022
Keywords
disability insurance, employer cofinancing, local government, yardstick competition
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-56032 (URN)10.1111/spol.12810 (DOI)000769622200001 ()2-s2.0-85126103435 (Scopus ID)HOA;intsam;800124 (Local ID)HOA;intsam;800124 (Archive number)HOA;intsam;800124 (OAI)
Funder
Forte, Swedish Research Council for Health, Working Life and Welfare, 2013-2482Forte, Swedish Research Council for Health, Working Life and Welfare, 2017-00092
Available from: 2022-03-14 Created: 2022-03-14 Last updated: 2022-07-22Bibliographically approved
Hagen, J., Hallberg, D. & Sjögren Lindquist, G. (2022). A Nudge to Quit? The Effect of a Change in Pension Information on Annuitization, Labour Supply, and Retirement Choices Among Older Workers. Economic Journal, 132(643), 1060-1094
Open this publication in new window or tab >>A Nudge to Quit? The Effect of a Change in Pension Information on Annuitization, Labour Supply, and Retirement Choices Among Older Workers
2022 (English)In: Economic Journal, ISSN 0013-0133, E-ISSN 1468-0297, Vol. 132, no 643, p. 1060-1094Article in journal (Refereed) Published
Abstract [en]

We study the effects of two exogenous modifications in the Swedish pension system application form nudging individuals towards a fixed-term payout. Meanwhile, the set of available options and the default option—life annuity—were unchanged during the period under study. We examine the effects on individuals’ payout decisions and the spillover effects on labour supply and other pensions using a difference-in-difference framework and detailed administrative data on actual payout decisions and a wide range of individual-level outcomes. Each modification increased the demand for the nudged payout by around 30 percentage points. The first modification also induced individuals to work less.

Place, publisher, year, edition, pages
Oxford University Press, 2022
Keywords
annuity, pension, nudge, decision framing
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-54662 (URN)10.1093/ej/ueab060 (DOI)000804590100008 ()HOA;;766450 (Local ID)HOA;;766450 (Archive number)HOA;;766450 (OAI)
Funder
Forte, Swedish Research Council for Health, Working Life and Welfare, 2013-2482; 017-00092
Available from: 2021-09-20 Created: 2021-09-20 Last updated: 2022-06-16Bibliographically approved
Hagen, J. (2022). Country case: Sweden. In: A. Mączyńska, J. Šebo & Ş. D. Voicu (Ed.), Pension Savings: The Real Return, 2022 Edition: A research report by Better Finance (pp. 450-477). Brussels: Better Finance
Open this publication in new window or tab >>Country case: Sweden
2022 (English)In: Pension Savings: The Real Return, 2022 Edition: A research report by Better Finance / [ed] A. Mączyńska, J. Šebo & Ş. D. Voicu, Brussels: Better Finance , 2022, p. 450-477Chapter in book (Other academic)
Abstract [en]

The Swedish pension system contains a great variety of different retirement savings products with over SEK 7,300 trillion (€726 billion) in assets under management (AuM). There are funded components in each of the three pillars. In the public pension system, 2.5% of earnings are allocated to the premium pension, whereas the default fund, AP7 Såfa, has had an average real rate of return of 7.78% compared to the 4.95% of all other funds over the last 19 years. The second pillar is dominated by four large agreement-based pension plans, covering more than 90% of the workforce. These have largely transitioned from a pay-as-you-go (PAYG) system to a funded system.

Abstract [sv]

Det svenska pensionssytemet består till stor del av avgiftsbestämda/fonderade pensioner. Totalt förvaltas över 7300 miljarder SEK (€726 miljarder) i pensionskapital. I det allmänna pensionssystemet sätts 2.5% av lönen av till den så kallade premiepensionen. I premiepensionen har förvalsalternativet, AP7 Såfa, haft en genomsnittlig realavkastning på 7.78% sedan 2001, jämfört med 4.95% för alla andra valbara fonder. Tjänstepensionssystemet domineras av fyra stora avtal som täcker över 90% av alla arbetstagare. Tjänstepensionerna har till största del gått från att vara PAYG till fonderade pensionssystem.

Place, publisher, year, edition, pages
Brussels: Better Finance, 2022
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-59257 (URN)
Note

On cover: Long-Term and Pension Savings: The Real Return, 2022 Edition.

Available from: 2022-12-30 Created: 2022-12-30 Last updated: 2022-12-30Bibliographically approved
Hagen, J. & Malisa, A. (2022). Financial fraud and individual investment behavior. Journal of Economic Behavior and Organization, 203, 593-626
Open this publication in new window or tab >>Financial fraud and individual investment behavior
2022 (English)In: Journal of Economic Behavior and Organization, ISSN 0167-2681, E-ISSN 1879-1751, Vol. 203, p. 593-626Article in journal (Refereed) Published
Abstract [en]

We show that, after the revelation of financial fraud in a major pension fund manager, two-thirds of affected investors fail to divest. Inert investors are on average younger, of lower SES and more influenced by default options. The majority of those who divest move their money to the only state-run option on the fund menu. The revelation of fraud also induces a small movement of investors from non-fraudulent private investment funds to the state alternative. We further show that most fraud victims end up in underperforming high-fee funds through their prior affiliation with a subscription-based financial advisor. Our analysis is based on the remarkable events surrounding the expulsion of Allra from the Swedish Premium Pension, and administrative, individual-level data on mutual fund choices and background characteristics. Our results illustrate that fraudulent fund managers may exploit widespread consumer biases in choice-oriented pension plans, and that information interventions by the government are important but far from fully effective in nudging victimized investors to take the right action. Pension plans may be characterized by investor inertia even under extreme circumstances such as fraud.

Place, publisher, year, edition, pages
Elsevier, 2022
Keywords
Financial fraud; Investment behavior; Pension scam; Retirement savings; Inertia
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-56633 (URN)10.1016/j.jebo.2022.09.015 (DOI)000875614700006 ()2-s2.0-85139877389 (Scopus ID)HOA;;1662005 (Local ID)HOA;;1662005 (Archive number)HOA;;1662005 (OAI)
Note

Included in doctoral thesis in manuscript form.

Available from: 2022-05-30 Created: 2022-05-30 Last updated: 2022-11-17Bibliographically approved
Hagen, J. (2022). Partial recall: differences between actual and self-reported annuitization decisions in Sweden. Journal of Pension Economics and Finance, 21(3), 375-404
Open this publication in new window or tab >>Partial recall: differences between actual and self-reported annuitization decisions in Sweden
2022 (English)In: Journal of Pension Economics and Finance, ISSN 1474-7472, E-ISSN 1475-3022, Vol. 21, no 3, p. 375-404Article in journal (Refereed) Published
Abstract [en]

This paper reports the results from a large telephone survey of 1,000 retiring white-collar workers in Sweden. Shortly before the interview, the participants at age 65 had a choice of receiving a life annuity by default or opting for a fixed-term payout, with a minimum payout length of 5 years. Large monetary amounts were at stake in the payout decision of the survey participants; the average monthly pension payment under the life annuity amounted to US $280. Comparing the survey responses with administrative records on actual payout choices, I find that a majority of retiring white-collar workers fail to recall their payout decision. The recollection rate is much lower among annuitants (those who chose the default option); only 40% of the annuitants accurately recalled their payout decision compared to 77% of those who opted for a fixed-term payout. Beyond payout choice, few individual characteristics predict successful recollection.

Place, publisher, year, edition, pages
Cambridge University Press, 2022
Keywords
Annuity, occupational pension, retirement, fixed-term payout, term certain annuity, D91, G41, J26, J32
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-51428 (URN)10.1017/S1474747220000372 (DOI)000779029700001 ()2-s2.0-85099338543 (Scopus ID)HOA;;51428 (Local ID)HOA;;51428 (Archive number)HOA;;51428 (OAI)
Available from: 2021-01-11 Created: 2021-01-11 Last updated: 2023-02-20Bibliographically approved
Hagen, J. (2022). Pensionssystemet behöver höjd pensionsålder, inte fler tillägg. Ekonomisk Debatt, 50(3), 79-86
Open this publication in new window or tab >>Pensionssystemet behöver höjd pensionsålder, inte fler tillägg
2022 (Swedish)In: Ekonomisk Debatt, ISSN 0345-2646, Vol. 50, no 3, p. 79-86Article in journal (Other (popular science, discussion, etc.)) Published
Abstract [sv]

Ingress: På senare tid har pensionerna seglat högt upp på den politiska dagordningen. I centrum för debatten står pensionssystemets förmåga att leverera tillräckliga pensioner. Syftet med den här artikeln är att ge ett aktuellt kunskapsunderlag samt diskutera några av de förslag som finns på hur pensionerna och pensionssystemet kan säkras

Place, publisher, year, edition, pages
Nationalekonomiska föreningen, 2022
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-56283 (URN)
Note

Valsymposium.

Available from: 2022-04-26 Created: 2022-04-26 Last updated: 2023-02-20Bibliographically approved
Hagen, J., Laun, L. & Palme, M. (2022). Pensionärernas inkomster i Sverige 1991–2019. Stockholm: Finanspolitiska rådet
Open this publication in new window or tab >>Pensionärernas inkomster i Sverige 1991–2019
2022 (Swedish)Report (Other academic)
Abstract [sv]

Från inledningen: På senare tid har de svenska pensionärernas ekonomiska situation debatterats intensivare än på mycket länge. Flera politiska överenskommelser har också gjorts för att stärka pensionärernas inkomster. Under 2021 började inkomstpensionstillägget betalas ut och i januari 2022 kom den socialdemokratiska regeringen överens med Miljöpartiet och Vänsterpartiet om att införa garantitillägget som en ytterligare förstärkning. I synnerhet det senare förslaget har kritiserats för att vara ett avsteg från pensionsreformens princip om ett allmänt pensionssystem som skulle präglas av långsiktighet och bred politisk förankring.

En grundläggande fråga om bakgrunden till reformerna är om det finns en saklig grund för att hävda att pensionärernas inkomstutveckling borde varit mer gynnsam. Men frågan om huruvida “pensionärerna har fått det bättre” kan ha olika tolkningar. Vissa skulle mena att frågan syftar på om pensionärerna som grupp har fått större konsumtionsmöjligheter över tid. Andra skulle mena att frågan syftar på om pensionärerna fått det bättre i förhållande till den arbetande befolkningen eller andra åldersgrupper i ekonomin. En tredje tolkning skulle kunna vara i vilken utsträckning pensionärerna har kunnat behålla den inkomst de varit vana vid under sin yrkesverksamma tid.

I denna rapport undersöker vi dessa tre frågeställningar genom att analysera tillgängliga mikrodata som inkluderar hela den vuxna svenska befolkningen under tidsperioden 1991 till 2019. Den stora datamängden vi har tillgång till möjliggör att vi inte bara studerar hur ett centralmått för inkomstfördelningen – medianinkomsten – utvecklats över tid, utan också hur utvecklingen sett ut i olika delar – percentiler – av fördelningen samt hur inkomstfördelningen inom gruppen pensionärer har förändrats. 

Place, publisher, year, edition, pages
Stockholm: Finanspolitiska rådet, 2022. p. 50
Series
Studier i finanspolitik, E-ISSN 1654-8000 ; 2022/1
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-56422 (URN)
Note

Rapport till Finanspolitiska rådet.

Available from: 2022-05-09 Created: 2022-05-09 Last updated: 2022-05-09Bibliographically approved
Organisations
Identifiers
ORCID iD: ORCID iD iconorcid.org/0000-0003-3093-726X

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