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Releasing Earnings Distributions using Differential Privacy: Disclosure Avoidance System For Post Secondary Employment Outcomes (PSEO)

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  • Andrew Foote
  • Ashwin Machanavajjhala
  • Kevin McKinney

Abstract

The U.S. Census Bureau recently released data on earnings percentiles of graduates from post secondary institutions. This paper describes and evaluates the disclosure avoidance system developed for these statistics. We propose a differentially private algorithm for releasing these data based on standard differentially private building blocks, by constructing a histogram of earnings and the application of the Laplace mechanism to recover a differentially-private CDF of earnings. We demonstrate that our algorithm can release earnings distributions with low error, and our algorithm out-performs prior work based on the concept of smooth sensitivity from Nissim, Raskhodnikova and Smith (2007).

Suggested Citation

  • Andrew Foote & Ashwin Machanavajjhala & Kevin McKinney, 2019. "Releasing Earnings Distributions using Differential Privacy: Disclosure Avoidance System For Post Secondary Employment Outcomes (PSEO)," Working Papers 19-13, Center for Economic Studies, U.S. Census Bureau.
  • Handle: RePEc:cen:wpaper:19-13
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    File URL: https://www2.census.gov/ces/wp/2019/CES-WP-19-13.pdf
    File Function: First version, 2019
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    Cited by:

    1. Kevin L. McKinney & John M. Abowd & John Sabelhaus, 2021. "United States Earnings Dynamics: Inequality, Mobility, and Volatility," NBER Chapters, in: Measuring Distribution and Mobility of Income and Wealth, pages 69-104, National Bureau of Economic Research, Inc.
    2. Vilhuber, Lars, 2023. "Reproducibility and transparency versus privacy and confidentiality: Reflections from a data editor," Journal of Econometrics, Elsevier, vol. 235(2), pages 2285-2294.
    3. Katharine G. Abraham & Ron S. Jarmin & Brian C. Moyer & Matthew D. Shapiro, 2020. "Introduction: Big Data for Twenty-First-Century Economic Statistics: The Future Is Now," NBER Chapters, in: Big Data for Twenty-First-Century Economic Statistics, pages 1-22, National Bureau of Economic Research, Inc.
    4. Andrew Foote, 2022. "Measuring Protection-Induced Errors in Earnings Outcomes from PSEO," CES Technical Notes Series 22-01, Center for Economic Studies, U.S. Census Bureau.

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