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Disclosure Avoidance of Hourly Earnings
Dynamic Topcoding of Usual Hourly Earnings
The Census Bureau has introduced a dynamic topcode, implemented monthly, with topcoding applied to the top 3 percent of hourly earnings reported. This method results in fewer cases being topcoded compared to the previous method which applied topcoding based on the individual’s usual hours worked variable. For individuals whose earnings are topcoded, the earnings variable contains the weighted average of the top 3% and not a cutoff value as has been done in past years. PTERNHLY, PTERNH1O, PTERNH2, and PTERNH1C are the hourly reporting variables. Below is an example of this process using fake data.
Hourly Wages |
Cumulative Percent |
Topcoding (Weighted Average of Top 3%) |
|
|
|
2 |
0.15 |
2 |
2.15 |
0.26 |
2.15 |
3.50 |
0.90 |
3.50 |
. |
. |
. |
. |
. |
. |
. |
. |
. |
46.5 |
96.90 |
46.5 |
47 |
96.93 |
47 |
49.5 |
97.06 |
64.20 |
50 |
97.46 |
64.20 |
51 |
97.55 |
64.20 |
. |
|
. |
. |
|
. |
. |
|
. |
65 |
99.40 |
64.20 |
68 |
99.45 |
64.20 |
70 |
99.60 |
64.20 |
75 |
99.75 |
64.20 |
85 |
99.80 |
64.20 |
90 |
100.00 |
64.20 |
Furthermore, values not topcoded as above, will be rounded based on the criteria below.
Usual Hourly Earning as Reported |
Rounded value on Public Use File |
$00.01 - $00.07 |
$00.05 |
$00.08 - $29.99 |
Nearest $00.05 |
$30.00 - $49.99 |
Nearest $00.25 |
$50.00 + |
Nearest $00.50 until topcoded |
Page Last Revised - July 16, 2024
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