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Combining Administrative and Survey Data to Improve Income Measurement

Author

Listed:
  • Meyer, Bruce D.

    (University of Chicago)

  • Mittag, Nikolas

    (CERGE-EI)

Abstract

We describe methods of combining administrative and survey data to improve the measurement of income. We begin by decomposing the total survey error in the mean of survey reports of dollars received from a government transfer program. We decompose this error into three parts, generalized coverage error (which combines coverage and unit non-response error and any error from weighting), item non-response or imputation error, and measurement error. We then discuss these three sources of error in turn and how linked administrative and survey data can assess and reduce each of these sources. We then illustrate the potential of linked data by showing how using linked administrative variables improves the measurement of income and poverty in the Current Population Survey, focusing on the substitution of administrative for survey data for three government transfer programs. Finally, we discuss how one can examine the accuracy of the underlying links used in the combined data.

Suggested Citation

  • Meyer, Bruce D. & Mittag, Nikolas, 2019. "Combining Administrative and Survey Data to Improve Income Measurement," IZA Discussion Papers 12266, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp12266
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    References listed on IDEAS

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    Cited by:

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    2. Christian Awuku-Budu & Dirk van Duym, 2022. "Developing Statistics on the Distribution of State Personal Income: Methodology and Preliminary Results," BEA Working Papers 0197, Bureau of Economic Analysis.
    3. Dennis Fixler & Marina Gindelsky & David Johnson, 2020. "Measuring Inequality in the National Accounts," BEA Working Papers 0175, Bureau of Economic Analysis.
    4. Korenman, Sanders & Remler, Dahlia K. & Hyson, Rosemary T., 2021. "Health insurance and poverty of the older population in the United States: The importance of a health inclusive poverty measure," The Journal of the Economics of Ageing, Elsevier, vol. 18(C).
    5. Nora Lustig, 2019. "The “Missing Rich” in Household Surveys: Causes and Correction Approaches," Commitment to Equity (CEQ) Working Paper Series 75, Tulane University, Department of Economics.

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    Keywords

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    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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