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Measurement Error in Earnings

Author

Listed:
  • Stella Martin
  • Kevin Stabenow
  • Mark Trede

Abstract

This paper investigates the statistical properties of measurement error in earnings with a linked panel comprising a survey and administrative information from pension records. We can replicate central properties from previous literature such as mean reversion and extend insights into longitudinal features with our decade-long panel. Central correlates in the decomposition of measurement error include gender, features related to the individual labor market biography and individual positions in the income distribution, where under-/overreporting of earnings is especially prevalent above/below the median..

Suggested Citation

  • Stella Martin & Kevin Stabenow & Mark Trede, 2024. "Measurement Error in Earnings," CQE Working Papers 10824, Center for Quantitative Economics (CQE), University of Muenster.
    • Handle: RePEc:cqe:wpaper:10824
    as

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    File URL: https://www.wiwi.uni-muenster.de/cqe/sites/cqe/files/CQE_Paper/cqe_wp_108_2024.pdf
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    References listed on IDEAS

    as
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    5. Bound, John & Krueger, Alan B, 1991. "The Extent of Measurement Error in Longitudinal Earnings Data: Do Two Wrongs Make a Right?," Journal of Labor Economics, University of Chicago Press, vol. 9(1), pages 1-24, January.
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    Keywords

    measurement error; earnings; survey data; administrative data; record linkage;
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