Incomes of people who work for themselves are likely more variable than people who work for someone

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Incomes of people who work for themselves are likely more variable than people who work for someone else. That’s because incomes for someone who is self employed range from $0 to virtually unlimited.

a. Is there sufficient evidence that middle class heads of households who work for someone else (OCCAT1: 1 = someone else, 2 = selfemployed/ partnership) have higher incomes that heads of households who are self-employed (INCOME)?

b. Estimate how much more heads of households earn than heads of households who are self-employed.

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