TY - JOUR
T1 - Measurement error in earnings data in the health and retirement study
AU - Bricker, Jesse
AU - Engelhardt, Gary V.
PY - 2008
Y1 - 2008
N2 - This paper provides new evidence on the extent of measurement error in respondent-reported earnings data by exploiting detailed W-2 records matched to older workers in the Health and Retirement Study (HRS). There is a negative correlation between the measurement error and the true value of earnings as measured by the W-2 records, which indicates the presence of non-classical measurement error. Yet for men and women, this error shows little correlation with a standard set of cross-sectional earnings determinants. Quantitatively, the bias from using self-reported earnings, either as a dependent or explanatory variable, is larger than those from existing studies of the CPS and PSID.
AB - This paper provides new evidence on the extent of measurement error in respondent-reported earnings data by exploiting detailed W-2 records matched to older workers in the Health and Retirement Study (HRS). There is a negative correlation between the measurement error and the true value of earnings as measured by the W-2 records, which indicates the presence of non-classical measurement error. Yet for men and women, this error shows little correlation with a standard set of cross-sectional earnings determinants. Quantitatively, the bias from using self-reported earnings, either as a dependent or explanatory variable, is larger than those from existing studies of the CPS and PSID.
KW - Earnings
KW - Measurement error
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U2 - 10.3233/jem-2008-0297
DO - 10.3233/jem-2008-0297
M3 - Article
AN - SCOPUS:58149384096
SN - 0747-9662
VL - 33
SP - 39
EP - 61
JO - Journal of Economic and Social Measurement
JF - Journal of Economic and Social Measurement
IS - 1
ER -