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Earnings Measurement Error, Nonresponse and Administrative Mismatch in the CPS

Author

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  • Christopher R. Bollinger
  • Charles Hokayem
  • James P. Ziliak

Abstract

Using the Current Population Survey Annual Social and Economic Supplement matched to Social Security Administration Detailed Earnings Records, we link observations across consecutive years to investigate a relationship between item nonresponse and measurement error in the earnings questions. Linking individuals across consecutive years allows us to observe switching from response to nonresponse and vice versa. We estimate OLS, IV, and finite mixture models that allow for various assumptions separately for men and women. We find that those who respond in both years of the survey exhibit less measurement error than those who respond in one year. Our findings suggest a trade-off between survey response and data quality that should be considered by survey designers, data collectors, and data users.

Suggested Citation

  • Christopher R. Bollinger & Charles Hokayem & James P. Ziliak, 2025. "Earnings Measurement Error, Nonresponse and Administrative Mismatch in the CPS," Working Papers 25-48, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:25-48
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    File URL: https://www2.census.gov/library/working-papers/2025/adrm/ces/CES-WP-25-48.pdf
    File Function: First version, 2025
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    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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