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An Analysis of Sample Selection and the Reliability of Using Short-term Earnings Averages in SIPP-SSA Matched Data

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  • Jonathan Davis
  • Bhashkar Mazumder

Abstract

In this paper, we document the extent to which the sample of the Survey of Income and Program Participation that is matched to the Social Security Administration�s administrative earnings records is nationally representative. We conclude that the match bias is small, so selection is not a serious concern. The matched sample over-represents individuals who are wealthy, who have financial assets or who have received a government-transfer and under-represents individuals who attrited from the SIPP. We use this matched sample to examine the relationship between short-term averages of earnings from the SIPP earnings and average lifetime earnings from the administrative records. Our estimates suggest that using short averages of earnings may understate the effects of permanent income on particular outcomes of interest.

Suggested Citation

  • Jonathan Davis & Bhashkar Mazumder, 2011. "An Analysis of Sample Selection and the Reliability of Using Short-term Earnings Averages in SIPP-SSA Matched Data," Working Papers 11-39, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:11-39
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    File URL: https://www2.census.gov/ces/wp/2011/CES-WP-11-39.pdf
    File Function: First version, 2011
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    Cited by:

    1. Bhashkar Mazumder, 2014. "Black–White Differences in Intergenerational Economic Mobility in the U.S," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q I.
    2. Arthur Sakamoto & Christopher R. Tamborini & ChangHwan Kim, 2018. "Long-Term Earnings Differentials Between African American and White Men by Educational Level," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 37(1), pages 91-116, February.
    3. Kenneth Couch & Christopher Tamborini & Gayle Reznik, 2015. "The Long-Term Health Implications of Marital Disruption: Divorce, Work Limits, and Social Security Disability Benefits Among Men," Demography, Springer;Population Association of America (PAA), vol. 52(5), pages 1487-1512, October.
    4. Christopher Tamborini & ChangHwan Kim & Arthur Sakamoto, 2015. "Education and Lifetime Earnings in the United States," Demography, Springer;Population Association of America (PAA), vol. 52(4), pages 1383-1407, August.

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