Survey Response Behavior as a Proxy for Unobserved Ability: Theory and Evidence
Sonja C. de New and
Stefanie Schurer
Journal of Business & Economic Statistics, 2022, vol. 41, issue 1, 197-212
Abstract:
An emerging literature is experimenting with using survey response behavior as a proxy for hard-to-measure abilities. We contribute to this literature by formalizing this idea and evaluating its benefits and risks. Using a standard and nationally representative survey from Australia, we demonstrate that the survey item-response rate (SIRR), a straightforward summary measure of response behavior, varies more with cognitive than with noncognitive ability. We evaluate whether SIRR is a useful proxy to reduce ability-related biases in a standard economic application. We show empirically that SIRR, although a weak and imperfect proxy, leads to omitted-variable bias reductions of up to 20%, and performs better than other proxy variables derived from paradata. Deriving the necessary and sufficient conditions for a valid proxy, we show that a strong proxy is neither a necessary nor a sufficient condition to reduce estimation biases. A critical consideration is to which degree the proxy introduces a multicollinearity problem, a finding of general interest. We illustrate the theoretical derivations with an empirical application.
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:taf:jnlbes:v:41:y:2022:i:1:p:197-212
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DOI: 10.1080/07350015.2021.2008404
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