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A test for selection in matched administrative earnings data

Author

Listed:
  • Bricker, Jesse

    (Federal Reserve Board)

  • Engelhardt, Gary V.

    (Syracuse University)

Abstract

The matching of administrative records to labor-market surveys is both commonly done and represents an important innovation in the measurement of earnings. However, a potential problem is that this process might introduce sample-selection bias. Individuals typically must give informed consent to have their earnings matched, and consenters may display systematically different labor-market behavior than non-consenters. In this paper, we use the differential timing of the consent process to test whether individuals in the Health and Retirement Study who consented represent a non-random, thus biased sample. In particular, we find that for both men and women there is a general pattern of negative selection across three measures of pre-entry labor-market behavior: labor-force participation, self-employment, and earnings.

Suggested Citation

  • Bricker, Jesse & Engelhardt, Gary V., 2014. "A test for selection in matched administrative earnings data," Journal of Economic and Social Measurement, IOS Press, issue 4, pages 247-255.
    • Handle: RePEc:ris:iosjes:0022
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    Citations

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    Cited by:

    1. Alice Henriques Volz & Lindsay Jacobs & Elizabeth Llanes & Kevin B. Moore & Jeffrey P. Thompson, 2021. "Wealth Concentration in the United States Using an Expanded Measure of Net Worth," Working Papers 21-6, Federal Reserve Bank of Boston.
    2. Alice Henriques Volz & Lindsay Jacobs & Elizabeth Llanes & Kevin B. Moore & Jeffrey P. Thompson, 2020. "Wealth Distribution and Retirement Preparation among Early Savers," Working Papers 20-4, Federal Reserve Bank of Boston.

    More about this item

    Keywords

    Earnings; selection bias;

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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