Thursday, September 30, 2010

Can You Get Lead Poisoning From A Bullet

The independent income: Hope for the high income.

In a previous post on the income of independent compared with dependents, we mentioned that the comparison of the averages hide the theme of the variations. In particular, the independents were more likely to get higher income than those dependent (with the same educational level): a person of low educational level had a limit of their income as a dependent could overcome as an independent.

Now, why focus on the highest levels? (And for a general analysis of income inequality of independents, one can read the text on this link ) For a purely subjective matter: People tend to think they have greater capabilities than the average, so their hope is not so much on getting the average but you get what you obtained them 'doing well' (as they suppose they count in that group). And I have the impression that the independents can be a particularly fond of the above, you need a dose not less confidence in yourself to devote to a job that has no income insured. In this sense, the expectation that there is a greater chance of obtaining an independent high-income and no longer relevant.

In any case, what the data tell us?

Source:

CASEN 2009 data show that the difference in favor of self-employed, same educational level is even higher in the higher percentiles compared with what happened in the average. We made the comparison with the percentile 75 (ie, hope to be in the top quartile of income, 'cautious optimism'), and the percentile 95 (which represents the hope for success). In

percentile compared to 75 found that the difference between independent and salaried employees is between 70% and 80% overall. The only exception occurs at the ends of education, where the difference is 30% and well below the difference in the average. This has to do with the dispersion of earnings in these groups: The difference in medians, but continues to support the independents is even smaller (and in fact, one can see that the average income of independent education complete top 75 percentile is higher than that reveals a highly skewed distribution for this group). But if you think in the 95 percentile, or greater optimism, we find the differences are even higher, and generally are about twice the income of dependents. In fact, the 95 percentile of the independent, non-formal education is similar (actually slightly above) the 95 percentile of the employees with completed secondary education.

In other words, the idea that the mean difference still does not account for the difference in the maximum income levels that can be achieved is reinforced with this data. And this is a difference that can be even more relevant to independent.

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