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An empirical total survey error decomposition using data combination

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  • Meyer, Bruce D.
  • Mittag, Nikolas

Abstract

Survey error is known to be pervasive and to bias even simple, but important, estimates of means, rates, and totals, such as the poverty and the unemployment rate. In order to summarize and analyze the extent, sources, and consequences of survey error, we define empirical counterparts of key components of the Total Survey Error Framework that can be estimated using data combination. Specifically, we estimate total survey error and decompose it into three high level sources of error: generalized coverage error, item non-response error and measurement error. We further decompose these sources into lower level sources such as failure to report a positive amount and errors in amounts conditional on reporting a positive value. For errors in dollars paid by two large government transfer programs, we use administrative records on the universe of program payments in New York State linked to three major household surveys to estimate the error components previously defined. We find that total survey error is large and varies in its size and composition, but measurement error is always by far the largest source of error. Our application shows that data combination makes it possible to routinely measure total survey error and its components. Our results allow survey producers to assess error reduction strategies and survey users to mitigate the consequences of survey errors or gauge the reliability of their conclusions.

Suggested Citation

  • Meyer, Bruce D. & Mittag, Nikolas, 2021. "An empirical total survey error decomposition using data combination," Journal of Econometrics, Elsevier, vol. 224(2), pages 286-305.
  • Handle: RePEc:eee:econom:v:224:y:2021:i:2:p:286-305
    DOI: 10.1016/j.jeconom.2020.03.026
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    References listed on IDEAS

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    1. Bruce D. Meyer & Nikolas Mittag, 2019. "Using Linked Survey and Administrative Data to Better Measure Income: Implications for Poverty, Program Effectiveness, and Holes in the Safety Net," American Economic Journal: Applied Economics, American Economic Association, vol. 11(2), pages 176-204, April.
    2. Bollinger, Christopher R & David, Martin H, 2001. "Estimation with Response Error and Nonresponse: Food-Stamp Participation in the SIPP," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(2), pages 129-141, April.
    3. Deborah Wagner & Mary Lane, 2014. "The Person Identification Validation System (PVS): Applying the Center for Administrative Records Research and Applications’ (CARRA) Record Linkage Software," CARRA Working Papers 2014-01, Center for Economic Studies, U.S. Census Bureau.
    4. Bruce D. Meyer & Wallace K. C. Mok & James X. Sullivan, 2015. "Household Surveys in Crisis," Journal of Economic Perspectives, American Economic Association, vol. 29(4), pages 199-226, Fall.
    5. Ridder, Geert & Moffitt, Robert, 2007. "The Econometrics of Data Combination," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 75, Elsevier.
    6. Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843, Elsevier.
    7. Barry T. Hirsch & Edward J. Schumacher, 2004. "Match Bias in Wage Gap Estimates Due to Earnings Imputation," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 689-722, July.
    8. Wooldridge, Jeffrey M., 2007. "Inverse probability weighted estimation for general missing data problems," Journal of Econometrics, Elsevier, vol. 141(2), pages 1281-1301, December.
    9. Meyer, Bruce D. & Mittag, Nikolas, 2017. "Misclassification in binary choice models," Journal of Econometrics, Elsevier, vol. 200(2), pages 295-311.
    10. Kyung Min Kang & Robert A. Moffitt, 2019. "The Effect of SNAP and School Food Programs on Food Security, Diet Quality, and Food Spending: Sensitivity to Program Reporting Error," Southern Economic Journal, John Wiley & Sons, vol. 86(1), pages 156-201, July.
    11. Bruce D. Meyer & Derek Wu & Victoria R. Mooers & Carla Medalia, 2019. "The Use and Misuse of Income Data and Extreme Poverty in the United States," NBER Working Papers 25907, National Bureau of Economic Research, Inc.
    12. Christopher R. Bollinger & Barry T. Hirsch, 2006. "Match Bias from Earnings Imputation in the Current Population Survey: The Case of Imperfect Matching," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 483-520, July.
    13. Christopher R. Bollinger & Barry T. Hirsch & Charles M. Hokayem & James P. Ziliak, 2019. "Trouble in the Tails? What We Know about Earnings Nonresponse 30 Years after Lillard, Smith, and Welch," Journal of Political Economy, University of Chicago Press, vol. 127(5), pages 2143-2185.
    14. Charles F. Manski, 2015. "Communicating Uncertainty in Official Economic Statistics: An Appraisal Fifty Years after Morgenstern," Journal of Economic Literature, American Economic Association, vol. 53(3), pages 631-653, September.
    15. Kristen Olson, 2013. "Do non-response follow-ups improve or reduce data quality?: a review of the existing literature," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(1), pages 129-145, January.
    16. Charles Hokayem & Christopher Bollinger & James P. Ziliak, 2015. "The Role of CPS Nonresponse in the Measurement of Poverty," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 110(511), pages 935-945, September.
    17. Bruce D. Meyer & James X. Sullivan, 2008. "Changes in the Consumption, Income, and Well-Being of Single Mother Headed Families," American Economic Review, American Economic Association, vol. 98(5), pages 2221-2241, December.
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    Cited by:

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    2. Adam Bee & Irena Dushi & Joshua Mitchell & Brad Trenkamp, 2024. "Measuring Income of the Aged in Household Surveys: Evidence from Linked Administrative Records," Working Papers 24-32, Center for Economic Studies, U.S. Census Bureau.
    3. Krishnendu Ghosh Dastidar & Sonakshi Jain, 2023. "Incompetence and corruption in procurement auctions," Economics of Governance, Springer, vol. 24(4), pages 421-451, December.
    4. Schneck, Andreas & Przepiorka, Wojtek, 2023. "Meta-dominance analysis - A tool for the assessment of the quality of digital behavioural data," SocArXiv cy3wj, Center for Open Science.
    5. Adam Bee & Joshua Mitchell & Nikolas Mittag & Jonathan Rothbaum & Carl Sanders & Lawrence Schmidt & Matthew Unrath, 2023. "National Experimental Wellbeing Statistics - Version 1," Working Papers 23-04, Center for Economic Studies, U.S. Census Bureau.
    6. Ethan Krohn, 2024. "Earnings Through the Stages: Using Tax Data to Test for Sources of Error in CPS ASEC Earnings and Inequality Measures," Working Papers 24-52, Center for Economic Studies, U.S. Census Bureau.
    7. Raj Chetty & John N Friedman & Michael Stepner & Opportunity Insights Team & Camille Baker & Harvey Barnhard & Matt Bell & Gregory Bruich & Tina Chelidze & Lucas Chu & Westley Cineus & Sebi Devlin-Fol, 2024. "The Economic Impacts of COVID-19: Evidence from a New Public Database Built Using Private Sector Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(2), pages 829-889.
    8. Celhay, Pablo & Meyer, Bruce D. & Mittag, Nikolas, 2024. "What leads to measurement errors? Evidence from reports of program participation in three surveys," Journal of Econometrics, Elsevier, vol. 238(2).
    9. Pablo A. Celhay & Bruce D. Meyer & Nikolas Mittag, 2022. "Stigma in Welfare Programs," NBER Working Papers 30307, National Bureau of Economic Research, Inc.
    10. Katarzyna Saczuk & Olga Zajkowska, 2024. "Measuring labour force participation during pandemics and methodological changes," NBP Working Papers 372, Narodowy Bank Polski.
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