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On the reliability of retrospective unemployment information in European household panel data

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  • Tomi Kyyrä
  • Ralf A. Wilke

Abstract

The retrospectively recalled calendar of activities in the European Community Household Panel is a prime resource for cross country analysis of unemployment experience. We investigate the reliability of these data and find that 26% of unemployed respondents misreported retrospectively their unemployment status in the subsequent interview. We observe large differences across countries: While the conditional probability of a successful recall is 96% in the UK, it is just 51% in Greece for a comparable individual. These evident data problems likely affect the results of cross country comparisons.

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Bibliographic Info

Paper provided by Government Institute for Economic Research Finland (VATT) in its series Working Papers with number 21.

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Date of creation: 31 Jan 2011
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Handle: RePEc:fer:wpaper:21

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Keywords: Recall error; unemployment; ECHP;

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  1. Akerlof, George A & Yellen, Janet L, 1985. "Unemployment through the Filter of Memory," The Quarterly Journal of Economics, MIT Press, vol. 100(3), pages 747-73, August.
  2. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
  3. DiTella, Rafael & MacCulloch, Robert, 1999. "The consequences of labour market flexibility: Panel evidence based on survey data," ZEI Working Papers B 02-1999, ZEI - Center for European Integration Studies, University of Bonn.
  4. Terracol, Antoine, 2009. "Guaranteed minimum income and unemployment duration in France," Labour Economics, Elsevier, vol. 16(2), pages 171-182, April.
  5. Pellizzari, Michele, 2006. "Unemployment duration and the interactions between unemployment insurance and social assistance," Labour Economics, Elsevier, vol. 13(6), pages 773-798, December.
  6. Garcia Perez, Jose Ignacio & Rebollo Sanz, Yolanda, 2005. "Wage changes through job mobility in Europe: A multinomial endogenous switching approach," Labour Economics, Elsevier, vol. 12(4), pages 531-555, August.
  7. Konstantinos Tatsiramos, 2009. "Unemployment Insurance in Europe: Unemployment Duration and Subsequent Employment Stability," Journal of the European Economic Association, MIT Press, vol. 7(6), pages 1225-1260, December.
  8. Thierry Magnac & Michael Visser, 1999. "Transition Models With Measurement Errors," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 466-474, August.
  9. Nickell, Stephen, 1998. "Unemployment: Questions and Some Answers," Economic Journal, Royal Economic Society, vol. 108(448), pages 802-16, May.
  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.
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Cited by:
  1. Jean-Olivier Hairault & Thomas Le Barbanchon & Thepthida Sopraseuth, 2012. "The Cyclicality of the Separation and Job Finding Rates in France," Working Papers 2012-22, Centre de Recherche en Economie et Statistique.
  2. Essi Eerola & Teemu Lyytikäinen, 2012. "On the role of public price information in housing markets," Working Papers 30, Government Institute for Economic Research Finland (VATT).

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