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Wages and Measurement Errors

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  • Joop Hartog
  • Hans Van Ophem

Abstract

In this paper two wage observations which relate to the same point in time will be compared and the differences analyzed. The OSA-labor market survey contains information about wages received in April 1985 as reported in April 1985 and as reported in October 1986 by the same respondents. Large differences appear to exist. This paper intends to investigate whether these differences are random, by developing and estimating a maximum likelihood model. The estimation results indicate that the differences are not random. In particular, changes in the individual's labor market position seem to be important in the explanation of the observed differences. This conclusion casts strong doubt on the quality of wage variables as reported from the memories of individuals.

Suggested Citation

  • Joop Hartog & Hans Van Ophem, 1991. "Wages and Measurement Errors," Annals of Economics and Statistics, GENES, issue 20-21, pages 243-256.
    • Handle: RePEc:adr:anecst:y:1991:i:20-21:p:243-256
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    File URL: http://www.jstor.org/stable/20075814
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    Cited by:

    1. van den Berg, Gerard J, 1999. "Empirical Inference with Equilibrium Search Models of the Labour Market," Economic Journal, Royal Economic Society, vol. 109(456), pages 283-306, June.
    2. Koning, Pierre & Berg, Gerard J. van den & Ridder, Geert, 1997. "A structural analysis of job search methods and subsequent wages," Serie Research Memoranda 0036, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.

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