Less than 25% of America’s businesses have paid employees.

“The majority of all business establishments in the United States are nonemployers, yet these nonemployer establishments average less than 4 percent of all sales and receipts nationally.”

“Most nonemployers are self-employed individuals operating a very small unincorporated business, which may or may not be the owner’s principal source of income.”

Here’s a handy chart of how the nonemployers are distributed by industry.

two-thirds-nations-businesses-do-not-have-paid-employees-figure-1

“The three states with the largest percentage of nonemployer establishments are Texas (79.5 percent), Georgia (79.4 percent) and Florida (79.0 percent). North Dakota is the only state where more than 30 percent of the establishments have paid employees.”

Interesting what the surrounding context is for self-employment these days.

Excerpts and chart from the census, here.

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“I raised a family on 40k and you can too!”

I think a lot of people who have kids, and particularly those who are in the vicinity of conservatives have heard some variation on this theme from older folks.  The exact amount varies, but it’s usually 30-50k.  I took the midpoint for this post.

Anyway, here’s a little chart of what 40k in 1970, 1980, 1990 and 2000 would be in current-year dollars.

Decade Annual Household Income in Dollars What It’s Worth In 2018 Dollars
1970 40,000 260,000
1980 40,000 125,000
1990 40,000 75,000
2000 40,000 55,000

I didn’t go back further because most people who say this were raising kids to college ages in the mid-70s to mid-90s.

Feel free to copy-paste this chart in any discussion of costs to raise kids. Calculator used is here and I lowballed a little.

Hedonic substitution and the myth of poor conservatives being middle class

Hedonic substitution in economics is buying ground beef instead of steak, or the Pinto instead of the Lambourghini.  People also engage in hedonic substitution.  It’s a hallmark of the conservative worldview.

Living in low quality housing, with one car in a car-centric society, eating a meatless or low protein diet, and yet all the while asserting that you’re middle class.  Homeschooling is often another hedonic substitution.  One hour once a week “co-op” is suddenly equivalent to 15k/kid/year private classical school and will definitely give you the same results.

It’s about telling people who have to substitute cheaper versions that they aren’t substituting at all but instead getting something for nothing because they’re just so smart and middle class.  And also not distinguishing between the people who can choose something else and thus aren’t operating on such tight margins.  The oft-cited (and mostly historical rather than current) statistics of children homeschooled by mere high school graduate mothers leave out how many of their fathers were engineers and STEM types.

While the median household income for married couples with under-18 kids is about six figures and has been even adjusted for inflation for decades, it’s still a median and a bunch of married folks with kids will end up on the low half of that median.  And instead of them being respectably poor or working class, they’re instead endlessly encouraged to engage in elaborate substitutes that cannot give the same result or benefit, but which would be superior if they weren’t being used as substitutes for something more expensive in time and/or money.

This approach also lets the higher-earning households avoid awkward social obligations and relationship building that used to be present even in individualist America out of a combination of ingrained habit and necessity.

About IT workers and their huge share of married with kids population

Ok not really, it’s a Census news release about some of the demographics of IT work though.  Relevant parts to my title are bolded.

Number of IT Workers Has Increased Tenfold Since 1970, Census Bureau Reports
IT Occupations
NEWS RELEASE: CB16-139

Workers Earn Almost Twice As Much As Other Occupations

AUG. 16, 2016 — The number of information technology (IT) workers now stands at 4.6 million, compared with just 450,000 in 1970 according to a new report from the U.S. Census Bureau’s American Community Survey. This upsurge means that IT workers now represent 2.9 percent of the U.S. labor force.

“The Census Bureau first identified IT occupations in the 1970 Census,” Julia Beckhusen said, a senior economist in the Census Bureau’s Industry and Occupation Statistics Branch. “At that time, there were only three IT occupation categories. That number grew to 12 by 2010 as the variety of work continued to increase.”

IT workers are more likely to be men, and on average, they earn more than their female counterparts do ($82,370 median earnings compared with $72,035). The proportion of women in IT occupations peaked at 31 percent in 1990 and declined to 25 percent in 2014. In comparison, the proportion of women in all occupations has increased over time, from 38 percent in 1970 to 47 percent in 2014.

Median annual earnings of IT occupation workers were $80,665 in 2014, or almost twice as much as the median earnings of the total workforce in 2014.

The median earnings, adjusted for inflation, for both men and women in IT occupations rose between 1970 and 2014. In contrast, male workers in the overall workforce experienced earnings declines, while median earnings for women rose.

The highest earning IT occupations were computer and information research scientists, software developers, applications and system software, computer and information systems managers, and computer network architects, each with median earnings of $90,000 or more. A higher share of workers in these occupations also had advanced degrees. For instance, 52 percent of computer and information research scientists had at least a master’s degree. Additionally, 22 percent of IT workers had a master’s degree or higher compared with 12 percent for all workers.

IT workers were twice as likely to work at home as all workers (10 percent compared with 4 percent). Web developers had the highest rate (20 percent) of working at home, compared with other IT occupations. Moreover, web developers had among the highest rates of self-employment (21 percent).

IT workers also tend to be younger. More than half (55 percent) were between the ages of 25 and 44 compared with 43 percent of all workers. Within the IT occupations, web developers were among the youngest with 38 percent between the ages of 25 and 34 and 11 percent between the ages of 16 and 24.

These statistics come from the Occupations in Information Technology report that uses statistics from decennial censuses and the American Community Survey to explore trends and characteristics of IT workers and describes the growth and increasing complexity of the IT workforce in the United States during the past half century.

Other highlights:

· In 2014, 18 percent of IT workers were Asian compared with 6 percent of all workers.

· Software developers, applications and systems software is the largest IT occupation, accounting for 25 percent of all IT workers.

· Database administrators had among the highest percentage of women (38 percent) but also had among the largest wage gap between men and women where men’s median earnings were $86,855 compared with $56,890 for women.

· IT workers had a higher percentage of full-time, year-round workers at 87 percent versus 69 percent of the total employed.

· IT occupations had a higher rate of foreign-born workers, 24 percent compared with 17 percent of total employed. Looking at the largest IT occupation, software developers, applications and systems software, 39 percent were foreign-born.

About the American Community Survey

The American Community Survey is the only source of small area estimates for social and demographic characteristics of the U.S. population. It gives communities the current information they need to plan investments and services. Retailers, homebuilders, police departments, and town and city planners are among the many private- and public-sector decision makers who count on these annual results. Visit the ACS helps communities page to see some examples.

These statistics would not be possible without the participation of the randomly selected households in the survey.

 

This one industry disproportionately contains married households with 3 or more children and disproportionately contains SAHMs in those households.

The implications of that plus the bolded stuff left as an exercise.