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Dynamics and measurement error in household income data collected with single questions

Author

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  • Tullio, Federico

Abstract

I provide insights into the dynamics of income collected in surveys using single questions, by extending to longitudinal settings a measurement error model previously developed in the literature. In this framework, single-question income data are validated against a benchmark provided by detailed source-by-source questions, which are considered the best practice for measuring income in surveys. I outline the assumptions required to infer benchmark income changes between two time periods (e.g., two subsequent survey waves), both at the macro- and micro-levels, when income is collected using single questions. Potential heterogeneity in respondents’ misreporting behaviour in single questions and its implications in longitudinal settings are also discussed. I apply the methodology to estimate income changes in Italy between 2022 and 2023, using data from a new web-survey conducted by the Bank of Italy. Dynamics and measurement error in household income data collected with single questions.

Suggested Citation

  • Tullio, Federico, 2025. "Dynamics and measurement error in household income data collected with single questions," MPRA Paper 124151, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:124151
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    More about this item

    Keywords

    Income data; Measurement error; Data quality;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other

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