Earnings Measurement Error, Nonresponse and Administrative Mismatch in the CPS
July 2025
Working Paper Number:
CES-25-48
Abstract
Using the Current Population Survey Annual Social and Economic Supplement matched to Social Security Administration Detailed Earnings Records, we link observations across consecutive years to investigate a relationship between item nonresponse and measurement error in the earnings questions. Linking individuals across consecutive years allows us to observe switching from response to nonresponse and vice versa. We estimate OLS, IV, and finite mixture models that allow for various assumptions separately for men and women. We find that those who respond in both years of the survey exhibit less measurement error than those who respond in one year. Our findings suggest a trade-off between survey response and data quality that should be considered by survey designers, data collectors, and data users.
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:
estimation,
estimating,
data,
statistical,
survey data,
survey,
aggregate,
respondent,
estimator,
earnings,
minority,
average,
salary,
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census bureau,
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survey income,
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Social Security Administration,
National Science Foundation,
Ordinary Least Squares,
Current Population Survey,
Survey of Income and Program Participation,
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Detailed Earnings Records,
Federal Insurance Contribution Act,
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Social and Economic Supplement,
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