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Does Repeated Measurement Improve Income Data Quality?

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  • Paul Fisher

Abstract

This paper exploits a natural experiment created by a survey design to show that the quality of income data systematically changes across waves of a panel. We estimate that the effect of being interviewed for a second time, relative to the first, is to increase mean monthly income by 8%. Dependent interviewing – a recall device commonly used in panel surveys – explains one third of the observed increase. The remaining share is attributed to changes in respondent behaviour (panel conditioning). We review the evidence for and against a reporting improvement vs. a behavioural response by survey participants.

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  • Paul Fisher, 2019. "Does Repeated Measurement Improve Income Data Quality?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 81(5), pages 989-1011, October.
    • Handle: RePEc:bla:obuest:v:81:y:2019:i:5:p:989-1011
    DOI: 10.1111/obes.12296
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    1. Bruce D. Meyer & Nikolas Mittag, 2015. "Using Linked Survey and Administrative Data to Better Measure Income: Implications for Poverty, Program Effectiveness and Holes in the Safety Net," Upjohn Working Papers 15-242, W.E. Upjohn Institute for Employment Research.
    2. Peter Lynn & Annette Jäckle & Stephen P. Jenkins & Emanuela Sala, 2012. "The impact of questioning method on measurement error in panel survey measures of benefit receipt: evidence from a validation study," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 175(1), pages 289-308, January.
    3. Hilary Hoynes & Diane Whitmore Schanzenbach & Douglas Almond, 2016. "Long-Run Impacts of Childhood Access to the Safety Net," American Economic Review, American Economic Association, vol. 106(4), pages 903-934, April.
    4. Van Landeghem, Bert, 2014. "A test based on panel refreshments for panel conditioning in stated utility measures," Economics Letters, Elsevier, vol. 124(2), pages 236-238.
    5. Joachim R. Frick & Jan Goebel & Edna Schechtman & Gert G. Wagner & Shlomo Yitzhaki, 2006. "Using Analysis of Gini (ANOGI) for Detecting Whether Two Subsamples Represent the Same Universe," Sociological Methods & Research, , vol. 34(4), pages 427-468, May.
    6. Johannes Haushofer & Jeremy Shapiro, 2016. "The Short-term Impact of Unconditional Cash Transfers to the Poor: ExperimentalEvidence from Kenya," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1973-2042.
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    Cited by:

    1. Fransham, Mark, 2020. "Neighbourhood gentrification, displacement, and poverty dynamics in post-recession England," LSE Research Online Documents on Economics 103905, London School of Economics and Political Science, LSE Library.
    2. Van Landeghem, Bert, 2019. "Stable traits but unstable measures? Identifying panel effects in self-reflective survey questions," Journal of Economic Psychology, Elsevier, vol. 72(C), pages 83-95.
    3. Davillas, Apostolos & de Oliveira, Victor Hugo & Jones, Andrew M., 2023. "Is inconsistent reporting of self-assessed health persistent and systematic? Evidence from the UKHLS," Economics & Human Biology, Elsevier, vol. 49(C).
    4. Richiardi, Matteo & Vella, Melchior, 2024. "Mind vs matter: economic and psychologic determinants of take-up rates of social benefits in the UK," Centre for Microsimulation and Policy Analysis Working Paper Series CEMPA6/24, Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research.
    5. Nicole Kapelle, 2021. "Why Time Cannot Heal All Wounds: Personal Wealth Trajectories of Divorced and Married Men and Women," SOEPpapers on Multidisciplinary Panel Data Research 1134, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Paul Fisher & Omar Hussein, 2023. "Understanding Society: the income data," Fiscal Studies, John Wiley & Sons, vol. 44(4), pages 377-397, December.
    7. Felix Chan & Laszlo Matyas & Agoston Reguly, 2024. "Modelling with Discretized Variables," Papers 2403.15220, arXiv.org.
    8. Crossley, Thomas F. & Fisher, Paul & Hussein, Omar, 2023. "Assessing data from summary questions about earnings and income," Labour Economics, Elsevier, vol. 81(C).

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