Wages and Measurement Errors
AbstractIn this paper two wage observations which relate to the same point in time will be compared and the differences analyzed. The OSA-labor market survey contains information about wages received in April 1985 as reported in April 1985 and as reported in October 1986 by the same respondents. Large differences appear to exist. This paper intends to investigate whether these differences are random, by developing and estimating a maximum likelihood model. The estimation results indicate that the differences are not random. In particular, changes in the individual's labor market position seem to be important in the explanation of the observed differences. This conclusion casts strong doubt on the quality of wage variables as reported from the memories of individuals.
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Bibliographic InfoArticle provided by ENSAE in its journal Annals of Economics and Statistics.
Volume (Year): (1991)
Issue (Month): 20-21 ()
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- Gerard J. van den Berg, 1998. "Empirical Inference with Equilibrium Search Models of the Labor Market," Tinbergen Institute Discussion Papers 98-089/3, Tinbergen Institute.
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