Measurement Error in Long-term Retrospective Recall Surveys Of Earnings
Several recent studies in labour and population economics use retrospective surveys to substitute for the high cost and limited availability of longitudinal survey data. Although a single interview can obtain a lifetime history, inaccurate long-term recall could make such retrospective surveys a poor substitute for longitudinal surveys, especially if it induces non-classical error that makes conventional statistical corrections less effective. In this paper, we use the unique Panel Study of Income Dynamics Validation Study to assess the accuracy of long-term recall data. We find underreporting of transitory events. This recall error creates a non-classical measurement error problem. A limited cost-benefit analysis is also conducted, showing how savings from using a cheaper retrospective recall survey might be compared with the cost of applying the less accurate recall data to a specific policy objective such as designing transfers to reduce chronic poverty.
|Date of creation:||31 Mar 2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: + 64 (0)7 838 4758 (Administrator)
Fax: + 64 7 838 4331
Web page: http://cms.mngt.waikato.ac.nz/departments/economics
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Megan Beckett & Julie Da Vanzo & Narayan Sastry & Constantijn Panis & Christine Peterson, 2001. "The Quality of Retrospective Data: An Examination of Long-Term Recall in a Developing Country," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 593-625.
- James P. Smith & Duncan Thomas, 2004.
"Remembrances of Things Past: Test-Retest Reliability of Retrospective Migration Histories,"
Labor and Demography
- James P. Smith & Duncan Thomas, 2003. "Remembrances of things past: test-retest reliability of retrospective migration histories," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 166(1), pages 23-49.
- H. Elizabeth Peters, 1988.
"Retrospective Versus Panel Data in Analyzing Lifecycle Events,"
Journal of Human Resources,
University of Wisconsin Press, vol. 23(4), pages 488-513.
- H. Elizabeth Peters, . "Retrospective Versus Panel Data in Analyzing Life-Cycle Events," University of Chicago - Population Research Center 87-5, Chicago - Population Research Center.
- Pischke, Jorn-Steffen, 1995.
"Measurement Error and Earnings Dynamics: Some Estimates from the PSID Validation Study,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 13(3), pages 305-14, July.
- Pischke, J.S., 1994. "Measurement Error and Earnings Dynamics: Some Estimates from the PSID Validation Study," Working papers 94-01, Massachusetts Institute of Technology (MIT), Department of Economics.
- Luttmer, Erzo F.P., 2001. "Measuring poverty dynammics and inequality in transition economies - disentangling real events from noisy data," Policy Research Working Paper Series 2549, The World Bank.
- Chaudhuri, Shubham & Ravallion, Martin, 1994. "How well do static indicators identify the chronically poor?," Journal of Public Economics, Elsevier, vol. 53(3), pages 367-394, March.
- Bound, John, et al, 1994. "Evidence on the Validity of Cross-Sectional and Longitudinal Labor Market Data," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 345-68, July.
- Gillian Paull, 2002. "Biases in the reporting of labour market dynamics," IFS Working Papers W02/10, Institute for Fiscal Studies.
- Bonggeun Kim & Gary Solon, 2005. "Implications of Mean-Reverting Measurement Error for Longitudinal Studies of Wages and Employment," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 193-196, February.
- Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843 Elsevier.
When requesting a correction, please mention this item's handle: RePEc:wai:econwp:07/03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Brian Silverstone)
If references are entirely missing, you can add them using this form.