Experimental Evidence of the Effect of Monetary Incentives on Cross-Sectional and Longitudinal Response: Experiences from the Socio-Economic Panel (SOEP)

21 Pages Posted: 29 Nov 2013

See all articles by Mathis Fräßdorf

Mathis Fräßdorf

German Institute for Economic Research (DIW)

Denise Sassenroth

German Institute for Economic Research (DIW Berlin)

John Körtner

University of Konstanz

Martin Kroh

German Institute for Economic Research (DIW Berlin) - German Socio Economic Panel

Jürgen Schupp

German Institute for Economic Research (DIW Berlin); Institute for Sociology, Freie Universität; The Institute for the Study of Labor (IZA)

Date Written: November 2013

Abstract

The paper gives an overview of two experiments implemented in the German Socio-Economic Panel (SOEP) considering the effect of monetary incentives on cross-sectional and longitudinal response propensities. We conclude that the overall effects of monetary incentives on response rates are positive compared to the "classic" SOEP setting, where a charity lottery ticket is offered as an incentive. In the cross-section, cash incentives are associated with a higher response rate as well as a lower rate of partial unit non-response (PUNR) and fewer noncontacts on the household level. Separate analyses for German and immigrant households show that a monetary incentive has a positive effect on immigrant households’ participation in subsequent waves. Regarding the regions where the households are located, the high cash incentive has a positive effect on response rates in provincial towns and rural areas. The incentive treatment decreases the likelihood of PUNR in the longitudinal setting by motivating members of participating households who had refused to participate in previous waves to respond in subsequent waves.

Keywords: incentive experiment, response rates, partial unit nonresponse, nonresponse bias, conditional incentives

Suggested Citation

Fräßdorf, Mathis and Sassenroth, Denise and Körtner, John and Kroh, Martin and Schupp, Juergen, Experimental Evidence of the Effect of Monetary Incentives on Cross-Sectional and Longitudinal Response: Experiences from the Socio-Economic Panel (SOEP) (November 2013). SOEPpaper No. 603. Available at SSRN: https://ssrn.com/abstract=2360550 or http://dx.doi.org/10.2139/ssrn.2360550

Mathis Fräßdorf (Contact Author)

German Institute for Economic Research (DIW) ( email )

Mohrenstraße 58
Berlin, 10117
Germany
+493089789222 (Phone)

Denise Sassenroth

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

John Körtner

University of Konstanz ( email )

Fach D-144
Universitätsstraße 10
Konstanz, D-78457
Germany

Martin Kroh

German Institute for Economic Research (DIW Berlin) - German Socio Economic Panel ( email )

DIW Berlin
Berlin, Berlin 14191
Germany

Juergen Schupp

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, D-10117
Germany
+49 30 8 978 9238 (Phone)
+49 30 8 978 9109 (Fax)

HOME PAGE: http://www.diw.de/deutsch/das_institut/mitarbeiter/innen/26652.html?uid=jschupp

Institute for Sociology, Freie Universität ( email )

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Berlin, D-14195
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HOME PAGE: http://www.polsoz.fu-berlin.de/soziologie/mitarbeiter/b_hochschullehrer/schupp.html

The Institute for the Study of Labor (IZA) ( email )

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Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/index_html?lang=de&mainframe=http%3A//www.iza.org/de/webcontent/personnel/fellows

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