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Measurement Error in Earnings Data: Replication of Meijer, Rohwedder, and Wansbeek's Mixture Model Approach to Combining Survey and Register Data

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  • Jenkins, Stephen P.

    (London School of Economics)

  • Rios-Avila, Fernando

    (Levy Economics Institute)

Abstract

Meijer, Rohwedder, and Wansbeek (MRW, Journal of Business & Economic Statistics, 2012) develop methods for prediction of a single earnings figure per worker from mixture factor models fitted using earnings data from multiple linked data sources. MRW apply their method using parameter estimates of Kapteyn and Ypma's mixture factor model (KY, Journal of Labour Economics 2007) fitted to earnings data for Swedish workers aged 50+. First, we replicate MRW's empirical analysis using the Swedish model estimates. Second, we check the generality of their empirical finding with a new application. Using estimates of a KY model fit to a linked dataset on earnings for UK employees of all ages, we confirm that MRW's principal findings about the performance of their various predictors of true earnings also hold in this different setting.

Suggested Citation

  • Jenkins, Stephen P. & Rios-Avila, Fernando, 2021. "Measurement Error in Earnings Data: Replication of Meijer, Rohwedder, and Wansbeek's Mixture Model Approach to Combining Survey and Register Data," IZA Discussion Papers 14172, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14172
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    References listed on IDEAS

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    1. Arie Kapteyn & Jelmer Y. Ypma, 2007. "Measurement Error and Misclassification: A Comparison of Survey and Administrative Data," Journal of Labor Economics, University of Chicago Press, vol. 25(3), pages 513-551.
    2. Jenkins, Stephen P. & Rios-Avila, Fernando, 2020. "Modelling errors in survey and administrative data on employment earnings: Sensitivity to the fraction assumed to have error-free earnings," Economics Letters, Elsevier, vol. 192(C).
    3. repec:taf:jnlbes:v:30:y:2012:i:2:p:191-201 is not listed on IDEAS
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    Cited by:

    1. Stephen P. Jenkins & Fernando Rios-Avila, 2023. "Finite mixture models for linked survey and administrative data: Estimation and postestimation," Stata Journal, StataCorp LP, vol. 23(1), pages 53-85, March.
    2. Apostolos Davillas & Victor Hugo Oliveira & Andrew M. Jones, 2024. "A model of errors in BMI based on self-reported and measured anthropometrics with evidence from Brazilian data," Empirical Economics, Springer, vol. 67(5), pages 2371-2410, November.
    3. Jenkins, Stephen P. & Rios-Avila, Fernando, 2021. "Reconciling Reports: Modelling Employment Earnings and Measurement Errors Using Linked Survey and Administrative Data," IZA Discussion Papers 14405, Institute of Labor Economics (IZA).
    4. R. Bollinger, Christopher & Valentinova Tasseva, Iva, 2022. "Income source confusion using the SILC," ISER Working Paper Series 2022-04, Institute for Social and Economic Research.
    5. Luis Ayala & Ana Pérez & Mercedes Prieto-Alaiz, 2022. "The impact of different data sources on the level and structure of income inequality," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 13(3), pages 583-611, September.

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    More about this item

    Keywords

    labour earnings; earnings prediction; measurement error; mixture factor model; Kapteyn-Ypma model;
    All these keywords.

    JEL classification:

    • 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

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