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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. Magnac & Visser, 1999. "Transition models with measurement errors," Working Papers 156514, Institut National de la Recherche Agronomique, France.
  2. Konstantinos Tatsiramos, 2009. "Unemployment Insurance in Europe: Unemployment Duration and Subsequent Employment Stability," Journal of the European Economic Association, MIT Press, MIT Press, vol. 7(6), pages 1225-1260, December.
  3. Nickell, Stephen, 1998. "Unemployment: Questions and Some Answers," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 108(448), pages 802-16, May.
  4. Akerlof, George A & Yellen, Janet L, 1985. "Unemployment through the Filter of Memory," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 100(3), pages 747-73, August.
  5. Garcia Perez, Jose Ignacio & Rebollo Sanz, Yolanda, 2005. "Wage changes through job mobility in Europe: A multinomial endogenous switching approach," Labour Economics, Elsevier, Elsevier, vol. 12(4), pages 531-555, August.
  6. 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.
  7. Michele Pellizzari, 2004. "Unemployment Duration and the Interactions Between Unemployment Insurance and Social Assistance," Working Papers 272, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  8. Terracol, Antoine, 2009. "Guaranteed minimum income and unemployment duration in France," Labour Economics, Elsevier, Elsevier, vol. 16(2), pages 171-182, April.
  9. 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, American Statistical Association, vol. 6(2), pages 221-29, April.
  10. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 11(3), pages 55-74, Summer.
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Cited by:
  1. Essi Eerola & Teemu Lyytikäinen, 2012. "On the role of public price information in housing markets," Working Papers, Government Institute for Economic Research Finland (VATT) 30, Government Institute for Economic Research Finland (VATT).
  2. Jean-Olivier Hairault & Thomas Le Barbanchon & Thepthida Sopraseuth, 2013. "The cyclicality of the separation and job finding rates in France," THEMA Working Papers 2013-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

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