> Using Method 1, and following Hall’s advice not to adjust income, Median profit rises to $8.55/hour from the $3.37 initially reported. For 54% of drivers, profit per hour is less than 2016 minimum wage in their state. 8% of drivers lose money.
> Using Method 2, median profit rises to $10/hour. For 41% of drivers, profit per hour is less than 2016 minimum wage in their state. 4% of drivers lose money.
I find it odd that the median is reported so prominently. I'd be far more interested in the mean (though I realize that could be misleading if not weighted by total hours and/or income).
It's also unclear if the minimum wage threshold was naive and equated dollars per hour in profit with the hourly wage number or accounted for things like employer-paid payroll taxes and mandatory insurance (e.g. unemployment, workers comp).
Link to the PDF of the revision comment: http://ceepr.mit.edu/files/papers/2018-005%20Authors%20State...
> Using Method 1, and following Hall’s advice not to adjust income, Median profit rises to $8.55/hour from the $3.37 initially reported. For 54% of drivers, profit per hour is less than 2016 minimum wage in their state. 8% of drivers lose money.
> Using Method 2, median profit rises to $10/hour. For 41% of drivers, profit per hour is less than 2016 minimum wage in their state. 4% of drivers lose money.
I find it odd that the median is reported so prominently. I'd be far more interested in the mean (though I realize that could be misleading if not weighted by total hours and/or income).
It's also unclear if the minimum wage threshold was naive and equated dollars per hour in profit with the hourly wage number or accounted for things like employer-paid payroll taxes and mandatory insurance (e.g. unemployment, workers comp).