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Occupation inflation in the Current Population Survey

Author

Listed:
  • Jonathan D. Fisher

    (U.S. Census Bureau, New York Census Research Data Center, New York, NY, USA)

  • Christina A. Houseworth

    (Economics Department, Hobart and William Smith Colleges, Geneva, NY, USA)

Abstract

A common caveat often accompanying results relying on household surveys regards respondent error. There is research using administrative data to estimate the extent of error, the correlates of error, and potential corrections for the error. The authors investigate measurement error in occupation classification in the Current Population Survey (CPS) using the panel component of the CPS to identify those who incorrectly report changing occupation. We find evidence that individuals are inflating their occupation to higher skilled and higher paying occupations than the ones they actually perform. Occupation inflation biases the education and race coefficients in standard Mincer equation results within occupations.

Suggested Citation

  • Jonathan D. Fisher & Christina A. Houseworth, 2013. "Occupation inflation in the Current Population Survey," Journal of Economic and Social Measurement, IOS Press, issue 3, pages 243-261.
    • Handle: RePEc:ris:iosjes:0003
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    Cited by:

    1. Leonard Nakamura & Jon Samuels & Rachel Soloveichik, 2017. "Measuring the Free Digital Economy within the GDP and Productivity Accounts," BEA Working Papers 0146, Bureau of Economic Analysis.
    2. Akina Ikudo & Julia Lane & Joseph Staudt & Bruce Weinberg, 2018. "Occupational Classifications: A Machine Learning Approach," NBER Working Papers 24951, National Bureau of Economic Research, Inc.
    3. Rachel Soloveichik, 2019. "Accounting for Improved Brick and Mortar Shopping Experiences," BEA Working Papers 0165, Bureau of Economic Analysis.
    4. Xia, Xing, 2021. "Barrier to Entry or Signal of Quality? The Effects of Occupational Licensing on Minority Dental Assistants," Labour Economics, Elsevier, vol. 71(C).

    More about this item

    Keywords

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    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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