nonearnings

Nonearnings is a term used in labor and income research to describe individuals who have zero money earnings in a specified reference period, such as a month or a year. It is distinct from employment status or not in the labor force, as a person can experience nonearnings even while employed part time or during gaps in work.

Measurement and scope vary by data source. In many surveys, earnings refer to money wages or salaries before taxes, and may include self-employment income, depending on the instrument. Transfers, benefits, and in-kind support are typically not counted as earnings, though some datasets track total household income that includes these components. Some definitions focus on wages alone, while others include self-employment revenue. Nonearnings can arise from complete nonparticipation in paid work or from intermittent work with no earnings in the reference period.

Causes and implications. Nonearnings can result from unemployment, underemployment, caregiving responsibilities, illness, education, retirement, or deliberate choice to avoid work. The prevalence of nonearnings highlights economic vulnerability and the diversity of income sources beyond wages, including government transfers or familial support. It also interacts with poverty and inequality measures, since households with nonearnings may rely on transfers or nonlabor income.

Limitations and use in research. Nonearnings is sensitive to the reference period and the specific earnings definition used by a dataset. It does not, by itself, indicate labor market attachment or long-term income risk. Researchers use nonearnings alongside unemployment, labor force participation, and total household income to analyze economic well-being and labor market dynamics.