Question

Status:Closed    Asked:Nov 01, 2017 - 09:58 AM

Does HOURWAGE in CPS include tips/commission?

For workers paid hourly (PAIDHOUR), I'd like their actual rate of pay, including tips and commission. Depending on the state, most tipped workers can be paid as low as $2.13/hour plus tips. But I'd like a more accurate reflection of the total rate that they earn.


I gather you draw your info from survey questions ERNHRTD/C and ERNHRED/C which explicitly exclude them. But I'm hoping you have a way of adjusting, so HOURWAGE includes tips, etc.


If your variable HOURWAGE does not include tips, etc., do you have a recommendation for another variable that would capture them? Like, maybe dividing EARNWEEK by UHRSWORK1?


I love your CPS product!...thank you for publishing it.

 
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Staff Answer

According to this documentation, it appears that "if a respondent reports that it is easiest to report earnings on an hourly basis, then a separate question is asked regarding the amount of overtime pay, tips and commissions usually received". Therefore, HOURWAGE should not include overtime, tips and commission.

As you have noted, dividing the usual weekly earnings (EARNWEEK) by usual hours worked (UHRSWORK1) will give you an hourly rate including tips, etc.

 

Nov 03, 2017 - 10:17 AM

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