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

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  • Francesconi, Marco
  • Sutherland, Holly
  • Zantomio, Francesca

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

Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2009-14.

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Date of creation: 01 Apr 2009
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Publication status: published
Handle: RePEc:ese:iserwp:2009-14

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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
Phone: 44-1206-872957
Fax: 44-1206-873151
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Web page: https://www.iser.essex.ac.uk/
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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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Web: https://www.iser.essex.ac.uk/publications/

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References

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  1. John Micklewright & Sylke V. Schnepf, 2009. "How Reliable are Income Data Collected with a Single Question?," DoQSS Working Papers 09-03, Department of Quantitative Social Science - Institute of Education, University of London.
  2. Mark B. Stewart, 2004. "The Impact of the Introduction of the U.K. Minimum Wage on the Employment Probabilities of Low-Wage Workers," Journal of the European Economic Association, MIT Press, vol. 2(1), pages 67-97, 03.
  3. 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.
  4. 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).
  5. 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.
  6. 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.
  7. James Banks & Sarah Smith, 2006. "Retirement in the UK," Oxford Review of Economic Policy, Oxford University Press, vol. 22(1), pages 40-56, Spring.
  8. 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.
  9. 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.
  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. 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.
  12. 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.
  13. 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.
  14. repec:ese:iserwp:2002-25 is not listed on IDEAS
  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. repec:ese:iserwp:2013-10 is not listed on IDEAS
  2. repec:ese:iserwp:2009-18 is not listed on IDEAS
  3. 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.
  4. Cappellari, Lorenzo & Jenkins, Stephen P., 2013. "Earnings and Labour Market Volatility in Britain," IZA Discussion Papers 7491, Institute for the Study of Labor (IZA).
  5. 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.
  6. 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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