Feminist scholars have theorized that the workplace is gendered and heteronormative1, but little research quantifies the economic consequences of those organizations. This study investigates income discrepancies between gay men and straight men and between lesbians and straight women, to quantify these consequences. Using the National Survey of Family Growth 2006-2010, and controlling for several correlates of income, I use ordinary least squares regression to test the hypothesis that lesbians have higher incomes on the average than straight women do, and that straight men earn more than gay men. I also use hierarchical regression to test the relative strengths of the associations between income and possible causes of variation in it. The study found that gay men earn more than straight men because of higher educational attainment, and that lesbians earn more than straight women, though this finding is not statistically significant. / Master of Science

Quoting James Andreoni, `the problem of tax compliance is as old as taxes themselves'. The sources of missing tax revenues have traditionally concerned tax administrations and particularly now in times when public finances are striving. In the quest for analysing the revenue that is foregone, tax administrations have started to produce a report of their tax gap, understood as the difference between the theoretical tax liability and the actual collection, to obtain a measure of the extent of non-compliance. Due to the complexity of the non-compliance behaviour and the lack of visibility of certain types of income, different methods are usually put in place in order to offer a plausible range for the estimates. This dissertation dedicates its two first chapters to providing an alternative method for estimating the income-gap (de fined to be one minus the proportion of reported to actual income) for two populations: the self-employed and the employees. The underlying data used for both cases is publicly available survey data on expenditures and income that is generated on a timely manner. This carries substantial advantages. First, relying on a general purpose survey dataset means that the estimation can be updated more frequently than if it was to rely solely on either the timing of administrative data or on survey data that is speci fically targeted to measure non-compliance. Second, it provides an alternative estimation using an independent source of data which allows for the triangulation of the estimate obtained using administrative sources. Third, it allows tax administrations which do not have readily available administrative data to perform estimations using a type of survey widespread available in most countries. The third chapter of this thesis explores the role of the extrinsic and intrinsic incentives in explaining engagement in the hidden economy defined as undeclared work practices. This chapter contributes firstly to the literature on shadow economy and to the debate of whether crowding effects are found between extrinsic and intrinsic motivations in a tax environment.

In our thesis we seek the answer to if trade openness has an effect on income gaps within countries. Since different trade flows can have different effects based on who the trading partners are, we disaggregate the trade flows based on these criteria. Using a dynamic two-ways fixed-effects model (LSDV) based on unbalanced panel data we follow 160 countries (of which 155 contribute to the variance since they have more than one observation) over the time-period 1970-2019 and a gini-coefficient that measures disponible household income. Furthermore, we also include a measurement of absolute poverty, measured as the share of the population living on less than 3,2 USD a day, where we have data for 130 countries (of which 111 with more than one observation, and the earliest observation is 1974). We divide our sample in low-, middle- and high-income countries and control for the effects on the gini-coefficient and absolute poverty stemming from both exports as well as imports. Our results indicate that when low-income countries exports to other low-income countries it decreases the income gaps within the exporting country. Low-income countries trade flows with middle- and high-income countries however seem to have a positive relationship with their income gaps, which we argue provides support for skill-enhancing trade (SET) and skill-biased technological change (SBTC). For high- and middle-income countries we don’t find any support for a relationship between income gaps and trade openness. Regarding absolute poverty we mostly see significant results for high-income countries, where export to other high-income countries decreases poverty while import from other high-income countries increases poverty. / I vår uppsats söker vi svar på om handelsöppenhet har en påverkan på inkomstklyftor inom länder. Då olika handelsflöden kan ha olika påverkan disaggregerar vi även handelsflödena med hänsyn till ursprungsland och handelspartner. Med hjälp av en dynamisk two-ways fixed effects modell (LSDV) baserad på obalanserad paneldata följer vi 160 länder (varav 155 bidrar till variansen då de har mer än en observation) över tidsperioden 1970-2019 och en gini-koefficient som mäter disponibel hushållsinkomst. Utöver detta inkluderar vi även ett mått på absolut fattigdom, mätt som andel av befolkningen som lever på mindre än 3,2 USD om dagen där vi har data för 130 länder (varav 111 med mer än en observation). Vi delar upp vårt sampel i låg-, medel- och höginkomstländer och kontrollerar för både exportens och importens påverkan på gini-koefficienten och absolut fattigdom. Våra resultat indikerar att när låginkomstländer exporterar till andra låginkomstländer minskar inkomstklyftorna i det exporterande landet. Låginkomstländers handelsflöden med medel- och höginkomstländer har däremot ett positivt samband med deras inkomstklyftor, något vi argumenterar för antyder ett stöd för skill-enhancing trade (SET) och skill-biased technological change (SBTC). För medel- och höginkomstländer finner vi inga belägg för ett samband mellan inkomstklyftor och handelsöppenhet. Gällande absolut fattigdom ser vi framförallt signifikanta resultat för höginkomstländer, där export till andra höginkomstländer minskar absolut fattigdom medan import från höginkomstländer ökar absolut fattigdom.