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A Note on Longitudinally Matching Current Population Survey (CPS) Respondents

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Author Info
Brigitte C. Madrian
Lars John Lefgren

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Abstract

In this paper, we propose an approach for evaluating the trade-offs inherent in different approaches used to match Current Population Survey (CPS) respondents across various CPS surveys. Because there is some measurement error in both the variables used to identify individuals over time and in the characteristics of individuals at any point in time, any procedure used to match CPS respondents has the possibility of both generating incorrect matches and failing to generate potentially valid matches. We propose using the information contained in the variable on whether an individual lived in the same house on March 1 of the previous year as a way to gauge these trade-offs. We find that as measured by reported residence one year ago, increasing the fraction of 'invalid' merges that are rejected usually comes at a cost of decreasing the fraction of 'valid' merges that are retained. However, there are clearly some approaches that are superior to others in the sense that they result in both a higher fraction of 'invalid' merges being rejected and a higher fraction of 'valid' merges being retained.

The programs to implement CPS matching across years in this paper are available .

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Technical Working Papers with number 0247.

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Date of creation: Nov 1999
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Handle: RePEc:nbr:nberte:0247

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Find related papers by JEL classification:
C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
D0 - Microeconomics - - General

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References listed on IDEAS
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  1. David Neumark & William Wascher, 1995. "The Effects of Minimum Wages on Teenage Employment and Enrollment: Evidence from Matched CPS Surveys," NBER Working Papers 5092, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. David M. Cutler & Brigitte C. Madrian, 1998. "Labor Market Responses to Rising Health Insurance Costs: Evidence on Hours Worked," RAND Journal of Economics, The RAND Corporation, vol. 29(3), pages 509-530, Autumn. [Downloadable!] (restricted)
    Other versions:
  3. Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June. [Downloadable!] (restricted)
  4. Finis Welch, 1993. "Matching the Current Population Surveys," Stata Technical Bulletin, StataCorp LP, vol. 2(12). [Downloadable!]
  5. Segal, Lewis M & Sullivan, Daniel G, 1997. "The Growth of Temporary Services Work," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 117-36, Spring. [Downloadable!] (restricted)
  6. Peracchi, Franco & Welch, Finis, 1994. "Trends in Labor Force Transitions of Older Men and Women," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 210-42, April. [Downloadable!] (restricted)
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  1. Tracy L. Regan & Gulcin Gumus, . "Tax Incentives as a Solution to the Uninsured: Evidence from the Self-Employed," Working Papers 0709, University of Miami, Department of Economics. [Downloadable!]
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  2. Eliane Badaoui & Eric Strobl & Frank Walsh, 2007. "Is There An Informal Employment Wage Penalty? Evidence from South Africa," IZA Discussion Papers 3151, Institute for the Study of Labor (IZA). [Downloadable!]
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  3. Kenneth A. Couch & Robert Fairlie, 2005. "Last Hired, First Fired? Black-White Unemployment and the Business Cycle," Working papers 2005-50, University of Connecticut, Department of Economics. [Downloadable!]
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  4. Erzo F.P. Luttmer, 2007. "Does the Minimum Wage Cause Inefficient Rationing?," NBER Working Papers 13012, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Michael W. L. Elsby, 2005. "Evaluating the Economic Significance of Downward Nominal Wage Rigidity," CEP Discussion Papers dp0704, Centre for Economic Performance, LSE. [Downloadable!]
  6. David Neumark & Daiji Kawaguchi, 2001. "Attrition Bias in Economic Relationships Estimated with Matched CPS Files," NBER Working Papers 8663, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. David W. Emmons & Eva Madly & Stephen A. Woodbury, 2005. "Refundable Tax Credits for Health Insurance: The Sensitivity of Simulated Impacts to Assumed Behavior," Staff Working Papers 05-119, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  8. Michael W. Elsby, 2006. "Evaluating the Economic Significance of Downward Nominal Wage Rigidity," NBER Working Papers 12611, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Fairlie, Robert W. & London, Rebecca A., 2008. "Race, Ethnicity and the Dynamics of Health Insurance Coverage," IZA Discussion Papers 3708, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Kuhn, Peter & Skuterud, Mikal, 2002. "Internet Job Search and Unemployment Durations," IZA Discussion Papers 613, Institute for the Study of Labor (IZA). [Downloadable!]
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  11. Giovanni Mastrobuoni, 2005. "Labor Supply Effects of the Recent Social Security Benefit Cuts: Empirical Estimates Using Cohort Discontinuities," Carlo Alberto Notebooks 33, Collegio Carlo Alberto, revised 2006. [Downloadable!]
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  12. Neil G. Bennett & Hsien-Hen Lu & Younghwan Song, 2002. "Welfare Reform and Changes in the Economic Well-Being of Children," NBER Working Papers 9399, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. repec:bep:eaptop:v:5:y:2005:i:1:p:1356-1356 is not listed on IDEAS
  14. Miguel Marcelle & Eric Strobl, 2003. "Do Smaller Firms Pay Less in the Caribbean? The Case of Trinidad and Tobago," The Journal of Development Studies, Taylor and Francis Journals, vol. 39(5), pages 181-198, June. [Downloadable!] (restricted)
  15. Giovanni Mastrobuoni, 2006. "Labor Supply Effects of the Recent Social Security Benefit Cuts: Empirical Estimates Using Cohort Discontinuities," Working Papers 893, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  16. John T. Addison & Christopher J. Surfield, 2006. "Does Atypical Work Help the Jobless? Evidence from a CAEAS/CPS Cohort Analysis," IZA Discussion Papers 2325, Institute for the Study of Labor (IZA). [Downloadable!]
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  17. Daniel O. Beltran & Kuntal K. Das & Robert W. Fairlie, 2006. "Do Home Computers Improve Educational Outcomes? Evidence from Matched Current Population Surveys and the National Longitudinal Survey of Youth 1997," IZA Discussion Papers 1912, Institute for the Study of Labor (IZA). [Downloadable!]
  18. David H. Autor & John J. Donohue III & Stewart J. Schwab, 2003. "The Costs of Wrongful-Discharge Laws," NBER Working Papers 9425, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  19. Strobl, Eric & Byrne, David, 2002. "Defining Unemployment in Developing Countries: Evidence from Trinidad and Tobago," IZA Discussion Papers 659, Institute for the Study of Labor (IZA). [Downloadable!]
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  20. Betsey Stevenson, 2008. "The Internet and Job Search," NBER Working Papers 13886, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  21. Courtney C. Coile & Phillip B. Levine, 2006. "Labor Market Shocks and Retirement: Do Government Programs Matter?," NBER Working Papers 12559, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  22. repec:bep:eapcon:v:7:y:2007:i:1:p:1768-1768 is not listed on IDEAS
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