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How Does the Dramatic Rise of CPS Non-Response Impact Labor Market Indicators?

Robert Bernhardt, David Munro and Erin Wolcott

No 781, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: Since 2010 and before the pandemic hit, the share of households refusing to participate in the Current Population Survey (CPS) tripled. We show that partially-responding households - households that respond to some but not all of the survey's eight panels - account for most of the rise. Leveraging the labor force status of partially-responding households in the months surrounding their non-response, we find that rising refusals artificially suppressed the labor force participation rate and employment-population ratio but had little discernible effect on the unemployment rate. Factors robustly correlated with state-level refusal rates include a larger urban population, a smaller Democratic vote share (our proxy for sentiment towards government), and the economic and social changes brought about by manufacturing decline.

Keywords: Current Population Survey; Non-Response; Unemployment; Labor Force Participation; Employment-Population Ratio (search for similar items in EconPapers)
JEL-codes: C83 E24 J64 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:781

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