Measurement Error in Long-term Retrospective Recall Surveys Of Earnings

John Gibson () and Bonggeun Kim ()

Working Papers in Economics from University of Waikato, Department of Economics

Abstract: Several recent studies in labour and population economics use retrospective surveys to substitute for the high cost and limited availability of longitudinal survey data. Although a single interview can obtain a lifetime history, inaccurate long-term recall could make such retrospective surveys a poor substitute for longitudinal surveys, especially if it induces non-classical error that makes conventional statistical corrections less effective. In this paper, we use the unique Panel Study of Income Dynamics Validation Study to assess the accuracy of long-term recall data. We find underreporting of transitory events. This recall error creates a non-classical measurement error problem. A limited cost-benefit analysis is also conducted, showing how savings from using a cheaper retrospective recall survey might be compared with the cost of applying the less accurate recall data to a specific policy objective such as designing transfers to reduce chronic poverty.

Keywords: longitudinal data; measurement error; retrospective surveys (search for similar items in EconPapers)
JEL-codes: C33 J64 (search for similar items in EconPapers)
Date: 2007-03-31
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