The Effect of Differential Incentives on Attrition Bias: Evidence from the PASS Wave 3 Incentive Experiment

Barbara Felderer, Gerrit Müller, Frauke Kreuter and Joachim Winter

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: Respondent incentives are widely used to increase response rates, but their effect on nonresponse bias has not been researched as much. To contribute to the research, we analyze an incentive experiment embedded within the third wave of the German household panel survey Panel Labor Market and Social Security conducted by the German Institute for Employment Research. Our question is whether attrition bias differs in two incentive plans. In particular, we want to study whether an unconditional Euro10 cash incentive yields less attrition bias in self-reported labor income and other sociodemographics than a conditional lottery ticket incentive. We find that unconditional cash incentives are more effective than conditional lottery tickets in reducing attrition bias in income and several sociodemographic variables.

Date: 2018
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Published in Field Methods 1 30(2018): pp. 56-69

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