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...