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Probing for Informal Work Activity

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  • Katharine G. Abraham
  • Ashley Amaya

Abstract

The Current Population Survey (CPS) is the source of official U.S. labor force statistics. The wording of the CPS employment questions may not always cue respondents to include informal work in their responses, especially when providing proxy reports about other household members. In a survey experiment conducted using a sample of Mechanical Turk respondents, additional probing identified a substantial amount of informal work activity not captured by the CPS employment questions, both among those with no employment and among those categorized as employed based on answers to the CPS questions. Among respondents providing a proxy report for another household member, the share identifying additional work was systematically greater among those receiving a detailed probe that offered examples of types of informal work than among those receiving a simpler global probe. Similar differences between the effects of the detailed and the global probe were observed when respondents answered for themselves only among those who had already reported multiple jobs. The findings suggest that additional probing could improve estimates of employment and multiple job holding in the CPS and other household surveys, but that how the probe is worded is likely to be important.

Suggested Citation

  • Katharine G. Abraham & Ashley Amaya, 2018. "Probing for Informal Work Activity," NBER Working Papers 24880, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:24880
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    1. Katharine G. Abraham & John C. Haltiwanger & Kristin Sandusky & James R. Spletzer, 2017. "Measuring the Gig Economy: Current Knowledge and Open Issues," NBER Chapters, in: Measuring and Accounting for Innovation in the Twenty-First Century, pages 257-298, National Bureau of Economic Research, Inc.
    2. Blair, Edward & Burton, Scot, 1987. "Cognitive Processes Used by Survey Respondents to Answer Behavioral Frequency Questions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 14(2), pages 280-288, September.
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    Cited by:

    1. Bas Scheer & Wiljan van den Berge & Maarten Goos & Alan Manning & Anna Salomons, 2022. "Alternative Work Arrangements and Worker Outcomes: Evidence from Payrolling," CPB Discussion Paper 435, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Anat Bracha & Mary A. Burke, 2023. "Informal Work and Official Employment Statistics: What’s Missing?," Working Papers 23-15, Federal Reserve Bank of Boston.
    3. Marina Gómez García & Laura Hospido, 2022. "The challenge of measuring digital platform work," Economic Bulletin, Banco de España, issue 1/2022.
    4. Tito Boeri & Giulia Giupponi & Alan B. Krueger & Stephen Machin, 2020. "Solo Self-Employment and Alternative Work Arrangements: A Cross-Country Perspective on the Changing Composition of Jobs," Journal of Economic Perspectives, American Economic Association, vol. 34(1), pages 170-195, Winter.
    5. Augendra Bhukuth & Damien Bazin & Abir Khribich, 2022. "Socioemotional Wealth and Product Differentiation in the Informal Economy: A Simple Theroetical Model," GREDEG Working Papers 2022-09, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    6. Katharine G. Abraham & John C. Haltiwanger & Kristin Sandusky & James R. Spletzer, 2017. "Measuring the Gig Economy: Current Knowledge and Open Issues," NBER Chapters, in: Measuring and Accounting for Innovation in the Twenty-First Century, pages 257-298, National Bureau of Economic Research, Inc.
    7. Abraham, Katharine G. & Hershbein, Brad & Houseman, Susan N., 2021. "Contract work at older ages," Journal of Pension Economics and Finance, Cambridge University Press, vol. 20(3), pages 426-447, July.
    8. Abi Adams-Prassl & Tom Waters & Maria Balgova & Matthias Qian, 2023. "Firm concentration & job design: the case of schedule flexible work arrangements," IFS Working Papers W23/14, Institute for Fiscal Studies.
    9. Nikhil Datta & Giulia Giupponi & Stephen Machin, 2019. "Zero-hours contracts and labour market policy," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 34(99), pages 369-427.
    10. Mark Kattenberg & Bas Scheer & Jurre Thiel, 2023. "Causal forests with fixed effects for treatment effect heterogeneity in difference-in-differences," CPB Discussion Paper 452, CPB Netherlands Bureau for Economic Policy Analysis.
    11. Bailey, Keith A. & Spletzer, James R., 2020. "A New Measure of Multiple Jobholding in the U.S. Economy," IZA Discussion Papers 13693, Institute of Labor Economics (IZA).
    12. Bracha, Anat & Burke, Mary A., 2021. "How Big is the Gig? The Extensive Margin, The Intensive Margin, and The Hidden Margin," Labour Economics, Elsevier, vol. 69(C).
    13. Adams-Prassl, Abigail & Balgova, Maria & Qian, Matthias, 2020. "Flexible Work Arrangements in Low Wage Jobs: Evidence from Job Vacancy Data," IZA Discussion Papers 13691, Institute of Labor Economics (IZA).
    14. Katharine G. Abraham & Brad Hershbein & Susan N. Houseman & Beth Truesdale, 2023. "The Independent Contractor Workforce: New Evidence On Its Size and Composition and Ways to Improve Its Measurement in Household Surveys," NBER Working Papers 30997, National Bureau of Economic Research, Inc.
    15. Bailey, Keith A. & Spletzer, James R., 2021. "A new measure of multiple jobholding in the U.S. economy," Labour Economics, Elsevier, vol. 71(C).
    16. Paul Glavin, 2020. "Multiple jobs? The prevalence, intensity and determinants of multiple jobholding in Canada," The Economic and Labour Relations Review, , vol. 31(3), pages 383-402, September.
    17. Adams-Prassl, Abigail & Balgova, Maria & Qian, Matthias, 2020. "Flexible Work Arrangements in Low Wage Jobs: Evidence from Job Vacancy Data," CEPR Discussion Papers 15263, C.E.P.R. Discussion Papers.
    18. Lawrence F. Katz & Alan B. Krueger, 2019. "Understanding Trends in Alternative Work Arrangements in the United States," NBER Working Papers 25425, National Bureau of Economic Research, Inc.

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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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