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?



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.