The Extent of Measurement Error In Longitudinal Earnings Data: Do Two Wrongs Make A Right?
John Bound and
Alan Krueger ()
No 2885, NBER Working Papers from National Bureau of Economic Research, Inc
This paper examines the properties and prevalence of measurement error in longitudinal earnings data. The analysis compares Current Population Survey data to administrative Social Security payroll tax records for a sample of heads of households over two years. In contrast. to the typically assumed properties of measurement error, the results indicate that errors are serially correlated over two years and negatively correlated with true earnings (i.e., mean reverting). Moreover, reported earnings are more reliable for females than males. Overall, the ratio of the variance of the signal to the total variance is .82 for men and .92 for women. These ratios fall to .65 and .81 when the data are specified in first-differences. The estimates suggest that longitudinal earnings data may be more reliable than previously believed.
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed
Published as Journal of Labor Economics, Volume 9, Number 1, January 1991, pp. 1-24.
Downloads: (external link)
Journal Article: The Extent of Measurement Error in Longitudinal Earnings Data: Do Two Wrongs Make a Right? (1991)
Working Paper: The Extent of Measurement Error in Longitudinal Earnings Data: Do Two Wrongs Make a Right? (1988)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:2885
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Series data maintained by ().