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Appendix B: Additional income comparisons

Tables 7-9 present cross-tabulations of HES income vs IRD income for overall income, wages and salary income and self-employment income. These cross-tabulations support the scatter plots presented in the main text and highlight the density of people who have recorded income of zero in both HES and IRD data.

These people are most pertinent in the cross-tabulation of self-employment income in Table 8, where we see that most people have their self-employment income classified correctly as zero. However, for those who do have self-employment income reported in either data source, the correlation between the HES and IRD measure is 0.25. This can be seen in Table 9 and Figure 5.

Table 7: Cross-tabulation of HES and IRD total comparable income (2006/07-2014/15)
Table 7: Cross-tabulation of HES and IRD total comparable income (2006/07-2014/15).

Note that all counts have been randomly rounded to base 3, and counts less than 6 have been suppressed. This means that columns and rows may not sum to totals.

Table 8: Cross-tabulation of HES and IRD wage and salary income (2006/07-2014/15)
Table 8: Cross-tabulation of HES and IRD wage and salary income (2006/07-2014/15)   .

Note that all counts have been randomly rounded to base 3, and counts less than 6 have been suppressed. This means that columns and rows may not sum to totals.

Table 9: Cross-tabulation of HES and IRD self-employment income (2006/07-2014/15)
Table 9: Cross-tabulation of HES and IRD self-employment income (2006/07-2014/15)   .

Note that all counts have been randomly rounded to base 3, and counts less than 6 have been suppressed. This means that columns and rows may not sum to totals.

We have repeated the analysis of total income for each subcategory of income. Outside of wages and salaries most people are correctly classified as earning zero in both data sources. However, those who report positive income in at least one of the data sources typically have a very different value (often zero) in the other source (see the self-employment income scatterplot in Figure 5). The discrepancies in these income categories have little effect on aggregate income because few people receive income from these sources and those who do receive it often earn only small amounts. Results for self-employment income are shown in Figure 5. As already mentioned in section 5, most of the conclusions about total income apply to wages and salaries. A scatterplot of wages and salaries is presented in Figure 3, which is practically identical to Figure 2 on overall income. Figure 6 presents a scatterplot of combined self-employment and wages and salaries, which, unsurprisingly, is near identical to Figures 2 and 3.

Figure 5: HES self-employment vs IRD self-employment
Figure 5: HES self-employment vs IRD self-employment   .
Figure 6: Combined wages and self-employment
Figure 6: Combined wages and self-employment   .
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