The self-employed often underreport income to tax authorities. Less is known about how trustworthy the income reported on household surveys is, but there is a concern that they may also underreport their income in surveys too – either because of concerns about it getting linked to official records, or because the easiest number for them to report is the one they tell the authorities. This raises obvious concerns about the measurement of items such as the poverty levels of the unemployed, the differential income gap between wage work and self-employment, and many other such uses.
David McKenzie's blog
- Berk has a nice piece on 538.com about the contribution of cash transfers towards reducing Brazil’s legendary inequality – it was even tweeted by Bill Gates!.
Many policy interventions combine several features that we think may all potentially be key for the results we are trying to achieve. For example, conditional cash transfers typically combine giving cash to the household, some message about the importance of health and education, some condition that requires the household to go to health clinics or kids to attend schools, and details such as who receives the cash (mother or father), how they receive it (directly paid to bank accounts or paid in cash), and the frequency of receipt.
- Angus Deaton on why the new PPP numbers look so different – his claim is that actually it was the 2005 numbers that were problematic.
- Chris Blattman on using qualitative measurement to validate quantitative measures of risky behaviors.
- Rachel Glennerster on individual vs community incentives for service provision.
- Visa lottery evidence on the impact of high-skilled immigration on jobs for US workers – Vox covers new work by Giovanni Peri and co-authors – they find cities which were unlucky in the H1-B lottery experience slower job growth for American workers in the tech sector without college degrees,
Several surveys of U.S. employers identify lack of soft skills as the area where young job-seekers have the largest deficiency.