Hurst, Erik; Li, Geng; Pugsley, Benjamin - Federal Reserve Board (Board of Governors of the … - 2011
There is a large literature showing that the self-employed underreport their income to tax authorities. In this paper …, we quantify the extent to which the self-employed also systematically underreport their income in U.S. household surveys …. To do so, we use the Engel curve describing the relationship between income and expenditures of wage and salary workers …