Question

Status:Closed    Asked:May 03, 2016 - 02:16 PM

Why are there non zero values for INCWAGE when CLASSWKR = 13 or 14?

Sometimes when CLASSWKR is "self-employed" there are values in INCWAGE that far exceed INCBUS or INCBUS is zero. For code 14 (self-employed, incorporated) in CLASSWKR all income is under INCWAGE. Why isn't it under INCBUS?

 
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Staff Answer

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Tim_Moreland

Staff

In the CPS, the Bureau of Labor Statistics considers only CLASSWKR="13: Self-employed, not incorporated" as self-employed workers. Those coded as CLASSWKR="14: Self-employed, incorporated" are considered an employee of their own business; therefore, income from their business is treated as wage and salary earnings (see p. 27 of "Understanding the employment measures from the CPS and CES survey").


Hope this helps.

 

May 03, 2016 - 05:19 PM

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