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Biases in the reporting of labour market dynamics

Author

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  • Gillian Paull

    (Institute for Fiscal Studies)

Abstract

Correctly measuring individual dynamics in labour market behaviour has become increasingly important as research and policy attention has become more focused on the relationships between current employment opportunities and past experience. Surveys collecting information on labour market histories use repeated interviews and retrospective reporting, laying the resulting data open to potential biases from spurious transitions due to random measurement errors and from systematic recall error. This paper uses a unique data opportunity provided by the British Household Panel Survey to systematically investigate the impact of recall on measured labour market behaviour and to highlight how and to what degree the biases in the reported data may affect the estimation of models of labour market dynamics. The results allow analysts to judge whether conclusions drawn from such models are likely to be compromised by the reporting biases.

Suggested Citation

  • Gillian Paull, 2002. "Biases in the reporting of labour market dynamics," IFS Working Papers W02/10, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:ifsewp:02/10
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    File URL: http://www.ifs.org.uk/wps/wp0210.pdf
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    Citations

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    Cited by:

    1. John Gibson & Bonggeun Kim, 2010. "Non-Classical Measurement Error in Long-Term Retrospective Recall Surveys," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(5), pages 687-695, October.
    2. Bracke, Philippe & Hilber, Christian A.L. & Silva, Olmo, 2018. "Mortgage debt and entrepreneurship," Journal of Urban Economics, Elsevier, vol. 103(C), pages 52-66.
    3. Matthias S. Hertweck & Oliver Sigrist, 2012. "The Aggregate Effects of the Hartz Reforms in Germany," Working Paper Series of the Department of Economics, University of Konstanz 2012-38, Department of Economics, University of Konstanz.
    4. Hairault, Jean-Olivier & Le Barbanchon, Thomas & Sopraseuth, Thepthida, 2015. "The cyclicality of the separation and job finding rates in France," European Economic Review, Elsevier, vol. 76(C), pages 60-84.
    5. Philippe Bracke & Christian Hilber & Olmo Silva, 2012. "Homeownerhip and Entrepreneurship," SERC Discussion Papers 0103, Spatial Economics Research Centre, LSE.
    6. repec:eee:labeco:v:47:y:2017:i:c:p:182-201 is not listed on IDEAS
    7. Kupets, Olga, 2006. "Determinants of unemployment duration in Ukraine," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 228-247, June.
    8. Bergemann, Annette & Pohlan, Laura & Uhlendorff, Arne, 2017. "The impact of participation in job creation schemes in turbulent times," Labour Economics, Elsevier, vol. 47(C), pages 182-201.
    9. Haardt, David, 2006. "Transitions out of and back to employment among older men and women in the UK," ISER Working Paper Series 2006-20, Institute for Social and Economic Research.
    10. Paolo Lucchino & Dr Richard Dorsett, 2013. "Visualising the school-to-work transition: an analysis using optimal matching," National Institute of Economic and Social Research (NIESR) Discussion Papers 414, National Institute of Economic and Social Research.
    11. repec:wsi:serxxx:v:62:y:2017:i:05:n:s0217590815500745 is not listed on IDEAS
    12. John Gibson & Bonggeun Kim, 2007. "Measurement Error in Long-term Retrospective Recall Surveys Of Earnings," Working Papers in Economics 07/03, University of Waikato.
    13. Philippe Bracke & Christian Hilber & Olmo Silva, 2012. "Homeownerhip and Entrepreneurship," SERC Discussion Papers 0103, Spatial Economics Research Centre, LSE.
    14. Mare, David C., 2006. "Constructing consistent work-life histories: a guide for users of the British Household Panel Survey," ISER Working Paper Series 2006-39, Institute for Social and Economic Research.
    15. Hendrik Jürges, 2005. "Unemployment, retrospective error, and life satisfaction," MEA discussion paper series 05089, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    16. Kupets, Olga, 2005. "What Is Behind Stagnant Unemployment in Ukraine: The Role of the Informal Sector," IZA Discussion Papers 1738, Institute for the Study of Labor (IZA).

    More about this item

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs

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