Used np.divide with out and where parameters (#5501)

* Used np.divide with out and where parameters * Change log * Populate changelog_entry yaml file * Made changes in changelog_entry yaml file
PolicyEngine · Jan 23, 2025 · 89624f0 · 89624f0
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commit 89624f0
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diff --git a/changelog_entry.yaml b/changelog_entry.yaml
@@ -0,0 +1,4 @@
+- bump: patch
+  changes:
+    fixed:
+      - Invalid value when dividing employment_income by total_earnings in marginal tax rate calculation.
diff --git a/policyengine_us/variables/household/marginal_tax_rate.py b/policyengine_us/variables/household/marginal_tax_rate.py
@@ -19,9 +19,14 @@ def formula(person, period, parameters):
         employment_income = person("employment_income", period)
         self_employment_income = person("self_employment_income", period)
         total_earnings = employment_income + self_employment_income
-        emp_self_emp_ratio = where(
-            total_earnings > 0, employment_income / total_earnings, 1
+
+        emp_self_emp_ratio = np.divide(
+            employment_income,
+            total_earnings,
+            out=np.ones_like(total_earnings, dtype=np.float32),
+            where=total_earnings > 0,
         )
+
         for adult_index in range(1, 1 + adult_count):
             alt_sim = sim.get_branch(f"mtr_for_adult_{adult_index}")
             for variable in sim.tax_benefit_system.variables: