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Using Administrative Data to Impute Income Non-Response in Household Surveys

Author

Listed:
  • V. Kerry Smith
  • Michael P. Welsh
  • Richard Carson
  • Stanley Presser

Abstract

Income is simultaneously one of the most important variables used by economists and the variable most likely to be missing due to item non-response. While observations that are missing income responses are often dropped from analyses, such treatment is usually inappropriate. More appropriate solutions rely on imputation based on either covariates (e.g., age and education) measured in the survey or on spatial estimates (most often for zip codes) from the American Community Survey. We describe a new spatially-based alternative using publicly available Internal Revenue Service tax data that allows estimates of zip code’s income distribution.

Suggested Citation

  • V. Kerry Smith & Michael P. Welsh & Richard Carson & Stanley Presser, 2022. "Using Administrative Data to Impute Income Non-Response in Household Surveys," NBER Working Papers 30420, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:30420
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    Cited by:

    1. Smith, V. Kerry, 2023. "Student debt forgiveness, residential energy credits, and equity," Economics Letters, Elsevier, vol. 222(C).

    More about this item

    JEL classification:

    • C0 - Mathematical and Quantitative Methods - - General
    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs

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