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Income source confusion using the SILC

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  • Bollinger, Christopher R.
  • Tasseva, Iva

Abstract

We use a unique panel of household survey data—the Austrian version of the European Union Statistics on Income and Living Conditions (SILC) for 2008–2011—which have been linked to individual administrative records on both state unemployment benefits and earnings. We assess the extent and structure of misreporting across similar benefits and between benefits and earnings. We document that many respondents fail to report participation in one or more of the unemployment programs. Moreover, they inflate earnings for periods when they are unemployed but receiving unemployment compensation. To demonstrate the impact of income source confusion on estimators, we estimate standard Mincer wage equations. Since unemployment is associated with lower education, the reports of unemployment benefits as earnings bias downward the returns to education. Failure to report unemployment benefits also leads to substantial sample bias when selecting on these benefits, as one might in estimating the returns to job training.

Suggested Citation

  • Bollinger, Christopher R. & Tasseva, Iva, 2023. "Income source confusion using the SILC," LSE Research Online Documents on Economics 119351, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:119351
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    File URL: http://eprints.lse.ac.uk/119351/
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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. Celhay, Pablo & Meyer, Bruce D. & Mittag, Nikolas, 2021. "Errors in Reporting and Imputation of Government Benefits and Their Implications," IZA Discussion Papers 14396, Institute of Labor Economics (IZA).
    3. Peter Lynn & Annette Jäckle & Stephen P. Jenkins & Emanuela Sala, 2012. "The impact of questioning method on measurement error in panel survey measures of benefit receipt: evidence from a validation study," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 175(1), pages 289-308, January.
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    Cited by:

    1. Ha Trong Nguyen & Huong Thu Le & Luke Connelly & Francis Mitrou, 2023. "Accuracy of self‐reported private health insurance coverage," Health Economics, John Wiley & Sons, Ltd., vol. 32(12), pages 2709-2729, December.

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    More about this item

    Keywords

    VP1-2017-010to C.R.B.].; OUP deal;

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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