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Match Bias from Earnings Imputation in the Current Population Survey: The Case of Imperfect Matching

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Author Info

  • Christopher R. Bollinger

    (University of Kentucky)

  • Barry T. Hirsch

    (Trinity University)

Abstract

This article examines match bias arising from earnings imputation. Wage equation parameters are estimated from mixed samples of workers reporting and not reporting earnings, the latter assigned earnings of donors. Regressions including attributes not used as imputation match criteria (e.g., union) are severely biased. Match bias also arises with attributes used as match criteria but matched imperfectly. Imperfect matching on schooling (age) flattens earnings profiles within education (age) groups and creates jumps across groups. Assuming conditional missing at random, a general analytic expression correcting match bias is derived and compared to alternatives. Reweighting a respondent-only sample proves an attractive approach.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 24 (2006)
Issue (Month): 3 (July)
Pages: 483-520

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Handle: RePEc:ucp:jlabec:v:24:y:2006:i:3:p:483-520

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References

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  12. Barry T. Hirsch, 2005. "Why do part-time workers earn less? The role of worker and job skills," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 58(4), pages 525-551, July.
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Citations

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Cited by:
  1. Bollinger, Christopher R. & Hirsch, Barry T., 2010. "Is Earnings Nonresponse Ignorable?," IZA Discussion Papers 5347, Institute for the Study of Labor (IZA).
  2. Christopher R. Bollinger & Barry T. Hirsch, 2010. "GDP & Beyond – die europäische Perspektive," Working Paper Series of the German Council for Social and Economic Data 165, German Council for Social and Economic Data (RatSWD).
  3. Seik Kim, . "Economic Assimilation of Foreign-Born Workers in the United States: An Overlapping Rotating Panel Analysis," Working Papers UWEC-2008-19, University of Washington, Department of Economics.
  4. Nakabayashi, Masaki, 2011. "Schooling, employer learning, and internal labor market effect: Wage dynamics and human capital investment in the Japanese steel industry, 1930-1960s," MPRA Paper 30597, University Library of Munich, Germany.
  5. Scotton, Carol R. & Taylor, Laura O., 2011. "Valuing risk reductions: Incorporating risk heterogeneity into a revealed preference framework," Resource and Energy Economics, Elsevier, vol. 33(2), pages 381-397, May.
  6. James T. Bang & Aniruddha Mitra, 2009. "Brain Drain and Institutions of Governance: Educational Attainment of Immigrants to the US 1988-2000," Middlebury College Working Paper Series 0919, Middlebury College, Department of Economics.
  7. Orrenius, Pia M. & Zavodny, Madeline, 2014. "How do e-verify mandates affect unauthorized immigrant workers?," Working Papers 1403, Federal Reserve Bank of Dallas.
  8. Even, William E. & Macpherson, David A., 2009. "Is Bigger Still Better? The Decline of the Wage Premium at Large Firms," IZA Discussion Papers 4082, Institute for the Study of Labor (IZA).
  9. Orrenius, Pia M. & Zavodny, Madeline, 2014. "How Do E-Verify Mandates Affect Unauthorized Immigrant Workers?," IZA Discussion Papers 7992, Institute for the Study of Labor (IZA).
  10. Barry T. Hirsch, 2008. "Sluggish Institutions in a Dynamic World: Can Unions and Industrial Competition Coexist?," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 153-176, Winter.
  11. Klapper, Leora & Lusardi, Annamaria & Panos, Georgios A., 2013. "Financial literacy and its consequences: Evidence from Russia during the financial crisis," Journal of Banking & Finance, Elsevier, vol. 37(10), pages 3904-3923.
  12. Barry T. Hirsch & Edward J. Schumacher, 2012. "Underpaid or Overpaid? Wage Analysis for Nurses Using Job and Worker Attributes," Southern Economic Journal, Southern Economic Association, vol. 78(4), pages 1096-1119, April.
  13. Emily Isenberg & Liana Christin Landivar & Esther Mezey, 2013. "A Comparison Of Person-Reported Industry To Employer-Reported Industry In Survey And Administrative Data," Working Papers 13-47, Center for Economic Studies, U.S. Census Bureau.
  14. Hirsch, Barry T., 2013. "An Anatomy of Public Sector Unions," IZA Discussion Papers 7313, Institute for the Study of Labor (IZA).
  15. Molly Dahl & Thomas DeLeire & Shannon Mok, 2012. "Food Insufficiency and Income Volatility in U.S. Households: The Effects of Imputed Earnings in the Survey of Income and Program Participation: Working Paper 2012-07," Working Papers 43137, Congressional Budget Office.
  16. Ziliak, James P. & Hardy, Bradley & Bollinger, Christopher, 2011. "Earnings volatility in America: Evidence from matched CPS," Labour Economics, Elsevier, vol. 18(6), pages 742-754.

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