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Self-Employment Income Reporting on Surveys

Author

Listed:
  • Christian Imboden
  • John Voorheis
  • Caroline Weber

Abstract

We examine the relation between administrative income data and survey reports for self-employed and wage-earning respondents from 2000 - 2015. The self-employed report 40 percent more wages and self-employment income in the survey than in tax administrative records; this estimate nets out differences between these two sources that are also shared by wage-earners. We provide evidence that differential reporting incentives are an important explanation of the larger self-employed gap by exploiting a well-known artifact � self-employed respondents exhibit substantial bunching at the first EITC kink in their administrative records. We do not observe the same behavior in their survey responses even after accounting for survey measurement concerns.

Suggested Citation

  • Christian Imboden & John Voorheis & Caroline Weber, 2023. "Self-Employment Income Reporting on Surveys," Working Papers 23-19, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:23-19
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    File URL: https://www2.census.gov/library/working-papers/2023/adrm/ces/CES-WP-23-19.pdf
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    References listed on IDEAS

    as
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    6. Emmanuel Saez, 2010. "Do Taxpayers Bunch at Kink Points?," American Economic Journal: Economic Policy, American Economic Association, vol. 2(3), pages 180-212, August.
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    1. Illenin Kondo & Kevin Rinz & Natalie Gubbay & Brandon Hawkins & John Voorheis & Abigail Wozniak, 2024. "Granular Income Inequality and Mobility Using IDDA: Exploring Patterns across Race and Ethnicity," NBER Chapters, in: Race, Ethnicity, and Economic Statistics for the 21st Century, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Income Reporting; Survey Accuracy; Measurement Error; Tax Evasion; Tax Avoidance;
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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