We have received a number of queries recently from market researchers concerning our methods in order to determine the underlying wage process, with particular regard to the correction of whitening. The whitening estimation methods we have developed have been described in outline in the boxed...

We develop an estimator of unreported income, perhaps due to tax evasion, that does not depend on as strict identifying assumptions as previous estimators based on microeconomic data. The standard identifying assumption that the self-employed underreport income whereas wage and salary workers do...