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The reporting of gross and net earnings in a postal survey

✍ Scribed by Brian G. M. Main

Publisher
Springer Netherlands
Year
1988
Tongue
English
Weight
554 KB
Volume
22
Category
Article
ISSN
0033-5177

No coin nor oath required. For personal study only.

✦ Synopsis

In a controlled experiment involving a sample comprising 8300 school leavers who entered the labour market in 1983/84, half of the sample were asked to report on gross weekly earnings (if employed) or expected gross earnings (if not employed). The other half were asked equivalent questions in terms of net earnings. Comparisons between the responses indicate that those in employment were able to provide consistent responses concerning gross and net earnings. Among the non-employed, however, there is reason to believe that those reporting expected net earnings may have underestimated the impact of the deductions due to tax and National Insurance contributions. The size of this understatement is such as to create a discrepancy of some 9 per cent (in terms of gross earnings) between the two sources of expected earnings.

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