U.S. Bureau of the Census for presentation at Seminar on Poverty Statistics

The United States Census Bureau has been compiling income estimates annually since 1947. These estimates are from the Current Population Survey (CPS), a nationwide random sample of households, whose primary purpose is to collect labor force information monthly. In March of each year (April prior to 1956), data are collected on the household's income for the previous calendar year. The official definition of income is not specified in law or regulation. In effect, what is included in income depends on the questions asked. As survey researchers know, the more questions one asks about income by source, the better able respondents are to identify all income. initially, there were only two questions asked of each adult: (1) "How much did... earn in wages and salaries in 1947? " and (2) "How much income from all sources did... receive in 1947?". In 949, self-employment income was asked separately and in 1950 farm and nonfarm self-employment income was asked separately. In 1962, the Census Bureau began systematically assigning values to missing income items (based on reported characteristics using the "hot deck" method). In March 1967, the number of income questions was again expanded, from four to eight categories. These additional items dealt with Social Security, interest, dividends, and rent. I