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A comparison of earnings measures from longitudinal and cross‐sectional surveys: evidence from the UK

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Author Info

  • Marco Francesconi
  • Holly Sutherland
  • Francesca Zantomio

Abstract

This paper compares earnings data from the BHPS with those collected in the FRS, contrasting two different points in time (1995/96 and 2003/04), allowing us to assess the possible extent of differential attrition in the BHPS data. We perform non-parametric tests of equality at the centre of the distributions and over the whole earnings distributions. We then apply multivariate regression methods to establish whether the earnings data yield different results in relation to three typical uses of earnings data. The two surveys have fairly similar earnings data in the first comparison year, while sizable differences emerge in the later comparison. This finding suggests the important role played by attrition and vintage effects.

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Bibliographic Info

Article provided by Royal Statistical Society in its journal Journal of the Royal Statistical Society: Series A (Statistics in Society).

Volume (Year): 174 (2011)
Issue (Month): 2 (04)
Pages: 297-326

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Handle: RePEc:bla:jorssa:v:174:y:2011:i:2:p:297-326

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References

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  1. John Micklewright & Sylke V. Schnepf, 2010. "How reliable are income data collected with a single question?," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 173(2), pages 409-429.
  2. Disney, Richard & Whitehouse, Edward, 1996. "What Are Occupational Pension Plan Entitlements Worth in Britain?," Economica, London School of Economics and Political Science, vol. 63(250), pages 213-38, May.
  3. Lorenzo Cappellari & Stephen P. Jenkins, 2008. "Estimating low pay transition probabilities accounting for endogenous selection mechanisms," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 57(2), pages 165-186.
  4. Stewart, Mark B., 2002. "The Impact Of The Introduction Of The Uk Minimum Wage On The Employment Probabilities Of Low Wage Workers," The Warwick Economics Research Paper Series (TWERPS) 630, University of Warwick, Department of Economics.
  5. Sutherland, Holly & Piachaud, David, 2001. "Reducing Child Poverty in Britain: An Assessment of Government Policy 1997-2001," Economic Journal, Royal Economic Society, vol. 111(469), pages F85-101, February.
  6. Sarah Smith & James Banks, 2006. "Retirement in the UK," The Centre for Market and Public Organisation 06/140, Department of Economics, University of Bristol, UK.
  7. Blundell, Richard & Brewer, Mike & Francesconi, Marco, 2007. "Job Changes and Hours Changes: Understanding the Path of Labour Supply Adjustment," IZA Discussion Papers 3044, Institute for the Study of Labor (IZA).
  8. Dayal N & Gomulka J & Mitton L & Sutherland H, 2000. "Enhancing Family Resources Survey income data with expenditure data from the Family Expenditure Survey: data comparisons," Microsimulation Unit Research Notes MU/RN/40, Microsimulation Unit at the Institute for Social and Economic Research.
  9. Lumsdaine, Robin L. & Mitchell, Olivia S., 1999. "New developments in the economic analysis of retirement," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 49, pages 3261-3307 Elsevier.
  10. Mathiowetz, Nancy A & Duncan, Greg J, 1988. "Out of Work, Out of Mind: Response Errors in Retrospective Reports of Unemployment," Journal of Business & Economic Statistics, American Statistical Association, vol. 6(2), pages 221-29, April.
  11. Nicholas Barr & Peter Diamond, 2006. "The economics of pensions," LSE Research Online Documents on Economics 2630, London School of Economics and Political Science, LSE Library.
  12. repec:ese:iserwp:97-06 is not listed on IDEAS
  13. Giorgina Brown & John Micklewright & Sylke V. Schnepf & Robert Waldmann, 2007. "International surveys of educational achievement: how robust are the findings?," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 170(3), pages 623-646.
  14. John Ermisch & Marco Francesconi, 2000. "Educational Choice, Families, and Young People's Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 35(1), pages 143-176.
  15. Marco Francesconi, 2005. "An evaluation of the childhood family structure measures from the sixth wave of the British Household Panel Survey," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(3), pages 539-566.
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Cited by:
  1. Kirstine Hansen & Dylan Kneale, 2013. "Does How You Measure Income Make a Difference to Measuring Poverty? Evidence from the UK," Social Indicators Research, Springer, vol. 110(3), pages 1119-1140, February.
  2. Cappellari, Lorenzo & Jenkins, Stephen P., 2013. "Earnings and Labour Market Volatility in Britain," IZA Discussion Papers 7491, Institute for the Study of Labor (IZA).
  3. Richard Blundell & Ben Etheridge, 2010. "Consumption, Income and Earnings Inequality in Britain," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 76-102, January.
  4. repec:ese:iserwp:2009-18 is not listed on IDEAS
  5. Bernard Fingleton & Simonetta Longhi, 2011. "The Effects of Agglomeration on Wages: Evidence from the Micro-Level," SERC Discussion Papers 0081, Spatial Economics Research Centre, LSE.

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