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Estimating Measurement Error in SIPP Annual Job Earnings: A Comparison of Census Survey and SSA Administrative Data

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  • Martha Stinson

Abstract

The third chapter investigates measurement error in SIPP annual job earnings data linked to SSA administrative earnings data. The multiple earnings measures provided by the survey and administrative data enable the identification of components of true variation and variation due to measurement error. We find that 18% of the variation in SIPP annual job earnings can be attributed to measurement error. We also find that in both the SIPP and the DER, measurement error is persistent over time. A lower level of auto-correlation in the SIPP measurement error than in the economic error component leads to a lower reliability ratio of .62 for first-differenced earnings.

Suggested Citation

  • Martha Stinson, 2002. "Estimating Measurement Error in SIPP Annual Job Earnings: A Comparison of Census Survey and SSA Administrative Data," Longitudinal Employer-Household Dynamics Technical Papers 2002-24, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:tpaper:2002-24
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    File URL: https://www2.census.gov/ces/tp/tp-2002-24.pdf
    File Function: First version, 2002
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    Cited by:

    1. Fredrik Andersson & Elizabeth E. Davis & Matthew L. Freedman & Julia I. Lane & Brian P. Mccall & Kristin Sandusky, 2012. "Decomposing the Sources of Earnings Inequality: Assessing the Role of Reallocation," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(4), pages 779-810, October.
    2. Wojciech Kopczuk & Emmanuel Saez & Jae Song, 2007. "Uncovering the American Dream: Inequality and Mobility in Social Security Earnings Data since 1937," NBER Working Papers 13345, National Bureau of Economic Research, Inc.
    3. Arie Kapteyn & Jelmer Y. Ypma, 2007. "Measurement Error and Misclassification: A Comparison of Survey and Administrative Data," Journal of Labor Economics, University of Chicago Press, vol. 25(3), pages 513-551.
    4. German Cubas & Pedro Silos, 2017. "Career Choice and the Risk Premium in the Labor Market," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 26, pages 1-18, October.

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