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Dealing With Earnings Bracket Responses In Household Surveys - How Sharp Are Midpoint Imputations?

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Listed author(s):
  • Dieter Von fintel

Abstract

Earnings functions form the basis of numerous labour market analyses. Non-response (particularly among higher earners) may, however, lead to the exclusion of a significant proportion of South Africa's earnings base. Earnings brackets built into surveys intend to maintain response rates. Econometric tools to incorporate brackets vary from "simplistic" imputation to interval regressions. Coefficient differences are investigated here to establish reliable remedies. Monte-Carlo simulations suggest that "simple" methods fail only under extreme skewness and when a substantial number of right-censored observations appear in the sample. Testing procedures applied to LFS data reveal that in practice coefficients are virtually invariant to the proposed methods. Copyright (c) 2007 The Author; Journal compilation (c) Economic Society of South Africa 2007.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1813-6982.2007.00122.x
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Article provided by Economic Society of South Africa in its journal South African Journal of Economics.

Volume (Year): 75 (2007)
Issue (Month): 2 (06)
Pages: 293-312

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Handle: RePEc:bla:sajeco:v:75:y:2007:i:2:p:293-312
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Cited by:

  1. Snower, Dennis J. & Goerlich, Dennis, 2013. "Multitasking and Wages," IZA Discussion Papers 7426, Institute for the Study of Labor (IZA).
  2. Claire Vermaak, 2012. "Tracking poverty with coarse data: evidence from South Africa," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(2), pages 239-265, June.
  3. Vermaark, Claire, 2010. "The Impact of Multiple Imputation of Coarsened Data on Estimates on the Working Poor in South Africa," WIDER Working Paper Series 086, World Institute for Development Economic Research (UNU-WIDER).
  4. Derek Yu, 2013. "Some factors influencing the comparability and reliability of poverty estimates across household surveys," Working Papers 03/2013, Stellenbosch University, Department of Economics.
  5. Dieter von Fintel, 2016. "Institutional wage-setting, labour demand and labour supply: causal estimates from a South African pseudo-panel," Working Papers 07/2016, Stellenbosch University, Department of Economics.

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