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Income reporting behaviour in sample surveys

Author

Listed:
  • Andrea Neri

    () (Bank of Italy, Economics, Research and International Relations area)

  • Roberta Zizza

    () (Bank of Italy, Economics, Research and International Relations area)

Abstract

This paper analyses respondents' behaviour when reporting their income sources in sample surveys and presents a method to deal with response error. Survey data relating to the number of earning recipients and to amounts received are validated using external information from administrative and statistical sources. Our findings suggest that the response bias on household income is about 12 per cent of reported figures. Misreporting is particularly severe for income from self-employment, financial assets and rents, as well as from secondary jobs. As to the distribution of response error, about 15 per cent of respondents show a high probability of misreporting. Misreporting is more diffuse among males, the older, the self-employed and respondents at the higher end of the earnings distribution.

Suggested Citation

  • Andrea Neri & Roberta Zizza, 2010. "Income reporting behaviour in sample surveys," Temi di discussione (Economic working papers) 777, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_777_10
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Giovanni D’Alessio & Stefano Iezzi, 2013. "Household over-indebtedness - Definition and measurement with Italian data," IFC Bulletins chapters,in: Bank for International Settlements (ed.), Proceedings of the Sixth IFC Conference on "Statistical issues and activities in a changing environment", Basel, 28-29 August 2012., volume 36, pages 496-517 Bank for International Settlements.
    2. Giovanni D'Alessio & Andrea Neri, 2015. "Income and wealth sample estimates consistent with macro aggregates: some experiments," Questioni di Economia e Finanza (Occasional Papers) 272, Bank of Italy, Economic Research and International Relations Area.
    3. Stefanie Gerold & Matthias Nocker, 2015. "Reduction of Working Time in Austria. A Mixed Methods Study Relating a New Work Time Policy to Employee Preferences," WWWforEurope Working Papers series 97, WWWforEurope.
    4. Giulia Cifaldi & Andrea Neri, 2013. "Asking income and consumption questions in the same survey: what are the risks?," Temi di discussione (Economic working papers) 908, Bank of Italy, Economic Research and International Relations Area.

    More about this item

    Keywords

    income distribution; response error; item response theory; SHIW; data accuracy.;

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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