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The implications of differences between employer and worker employment|earnings reports for policy evaluation

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  • Geoffrey L. Wallace

    (University of Wisconsin-Madison)

  • Robert Haveman

    (University of Wisconsin-Madison)

Abstract

Differences in administrative (UI) and survey (S) records on employment and earnings have substantial implications for assessing the impact of a variety of public interventions, such as welfare-to-work and employment training programs, and especially the state-oriented welfare reform legislation of 1996. We use data from the 1998 and 1999 waves of the Child Support Demonstration Evaluation (CSDE) Resident Parent Surveys to explore individual differences between survey and UI employment and earnings reports for a Wisconsin sample of current and former welfare recipients. After exploring the potential causes of misreports from both sources, we document the degree of discrepancy between survey and UI earnings and employment measures and assess the difference between the two earnings measures in estimates of simple human capital (earnings) functions. Last, we evaluate the correspondence of the two measures with “hardship” indicators of economic well-being.

Suggested Citation

  • Geoffrey L. Wallace & Robert Haveman, 2007. "The implications of differences between employer and worker employment|earnings reports for policy evaluation," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 26(4), pages 737-754.
    • Handle: RePEc:wly:jpamgt:v:26:y:2007:i:4:p:737-754
    DOI: 10.1002/pam.20291
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    References listed on IDEAS

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    3. Howard S. Bloom & Carolyn J. Hill & James A. Riccio, 2003. "Linking program implementation and effectiveness: Lessons from a pooled sample of welfare-to-work experiments," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 22(4), pages 551-575.
    4. V. J. Hotz & J. K. Scholz, "undated". "Measuring Employment and Income for Low-Income Populations with Administrative and Survey Data," Institute for Research on Poverty Discussion Papers 1224-01, University of Wisconsin Institute for Research on Poverty.
    5. Sheldon Danziger & Colleen M. Heflin & Mary Corcoran & Elizabeth Oltmans, 2002. "Does it Pay to Move from Welfare to Work?," JCPR Working Papers 254, Northwestern University/University of Chicago Joint Center for Poverty Research.
    6. LaDonna Pavetti & Gregory Acs, 2001. "Moving Up, Moving Out, or Going Nowhere? A Study of the Employment Patterns of Young Women and the Implications for Welfare Mothers," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(4), pages 721-736.
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    Cited by:

    1. Marios Michaelides & Peter R. Mueser & Jeffrey A. Smith, 2021. "Do Reemployment Programs For The Unemployed Work For Youth? Evidence From The Great Recession In The United States," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 162-185, January.
    2. Marios Michaelides & Peter Mueser, 2020. "The Labor Market Effects of US Reemployment Policy: Lessons from an Analysis of Four Programs during the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 38(4), pages 1099-1140.
    3. Quinn Moore & Irma Perez-Johnson & Robert Santillano, 2018. "Decomposing Differences in Impacts on Survey- and Administrative-Measured Earnings From a Job Training Voucher Experiment," Evaluation Review, , vol. 42(5-6), pages 515-549, October.
    4. Burt S. Barnow & Jeffrey Smith, 2015. "Employment and Training Programs," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 127-234, National Bureau of Economic Research, Inc.
    5. Jepsen, Christopher & Mueser, Peter R. & Troske, Kenneth & Jeon, Kyung-Seong, 2023. "Estimates of Earnings Returns by Field of Study for For-Profit Schools and Community Colleges," IZA Discussion Papers 16568, Institute of Labor Economics (IZA).
    6. Marios Michaelides & Peter Mueser, 2018. "Are Reemployment Services Effective? Experimental Evidence from the Great Recession," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 37(3), pages 546-570, June.
    7. Annalisa Mastri & Dana Rotz & Elias S. Hanno, "undated". "Comparing Job Training Impact Estimates Using Survey and Administrative Data," Mathematica Policy Research Reports 157778d936f848ddb0b4e8e32, Mathematica Policy Research.
    8. Lachowska, Marta & Mas, Alexandre & Woodbury, Stephen A., 2022. "How reliable are administrative reports of paid work hours?," Labour Economics, Elsevier, vol. 75(C).
    9. Wu, Chi-Fang & Cancian, Maria & Wallace, Geoffrey, 2014. "The effect of welfare sanctions on TANF exits and employment," Children and Youth Services Review, Elsevier, vol. 36(C), pages 1-14.
    10. Chung, Yiyoon, 2011. "Children's exposure to paternal imprisonment: Incidence, evolution, and correlates among young nonmarital children," Children and Youth Services Review, Elsevier, vol. 33(5), pages 575-587, May.
    11. Fredrik Andersson & Harry J. Holzer & Julia I. Lane & David Rosenblum & Jeffrey Smith, 2024. "Does Federally Funded Job Training Work? Nonexperimental Estimates of WIA Training Impacts Using Longitudinal Data on Workers and Firms," Journal of Human Resources, University of Wisconsin Press, vol. 59(4), pages 1244-1283.
    12. Ha, Yoonsook & Meyer, Daniel R., 2010. "Child care subsidy patterns: Are exits related to economic setbacks or economic successes?," Children and Youth Services Review, Elsevier, vol. 32(3), pages 346-355, March.
    13. Maria Cancian & Daniel Meyer & Steven Cook, 2011. "The Evolution of Family Complexity from the Perspective of Nonmarital Children," Demography, Springer;Population Association of America (PAA), vol. 48(3), pages 957-982, August.
    14. Burt S. Barnow & David H. Greenberg, 2019. "Special Issue Editors’ Essay," Evaluation Review, , vol. 43(5), pages 231-265, October.
    15. Ha, Yoonsook & Miller, Daniel P., 2015. "Child care subsidies and employment outcomes of low-income families," Children and Youth Services Review, Elsevier, vol. 59(C), pages 139-148.
    16. Tefft, Nathan, 2011. "Insights on unemployment, unemployment insurance, and mental health," Journal of Health Economics, Elsevier, vol. 30(2), pages 258-264, March.
    17. Wu, Chi-Fang, 2011. "Long-term employment and earnings among low-income families with children," Children and Youth Services Review, Elsevier, vol. 33(1), pages 91-101, January.
    18. Christopher Jepsen & Peter Mueser & Kenneth Troske & Kyung-Seong Jeon, 2021. "The Benefits of Alternatives to Conventional College: Comparing the Labor-Market Returns to For-Profit Schools and Community Colleges," CESifo Working Paper Series 9272, CESifo.
    19. Burt S. Barnow & David Greenberg, 2015. "Do Estimated Impacts on Earnings Depend on the Source of the Data Used to Measure Them? Evidence From Previous Social Experiments," Evaluation Review, , vol. 39(2), pages 179-228, April.
    20. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    21. Kwon, Hyeok Chang & Meyer, Daniel R., 2011. "How do economic downturns affect welfare leavers? A comparison of two cohorts," Children and Youth Services Review, Elsevier, vol. 33(5), pages 588-597, May.

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