Modelling Errors in Survey and Administrative Data on Employment Earnings: Sensitivity to the Fraction Assumed to Have Error-Free Earnings

13 Pages Posted: 4 May 2020

See all articles by Stephen P. Jenkins

Stephen P. Jenkins

London School of Economics & Political Science (LSE) - Department of Social Policy and Administration; Institute for the Study of Labor (IZA); University of Essex - Institute for Social and Economic Research (ISER)

Fernando Rios Avila

Bard College - The Levy Economics Institute

Abstract

Kapteyn and Ypma (Journal of Labour Economics 2007) is an influential study of errors in survey and administrative data on employment earnings. To fit their mixture models, Kapteyn and Ypma assume a specific fraction of their sample have error-free earnings. Using a new UK dataset, we assess the sensitivity of model estimates and post-estimation statistics to variations in this fraction and find some lack of robustness.

Keywords: measurement error, misclassification error, labour earnings, Kapteyn-Ypma model

JEL Classification: C81, C83, D31

Suggested Citation

Jenkins, Stephen P. and Rios Avila, Fernando, Modelling Errors in Survey and Administrative Data on Employment Earnings: Sensitivity to the Fraction Assumed to Have Error-Free Earnings. IZA Discussion Paper No. 13196, Available at SSRN: https://ssrn.com/abstract=3590894

Stephen P. Jenkins (Contact Author)

London School of Economics & Political Science (LSE) - Department of Social Policy and Administration ( email )

Houghton Street
London, England WC2A 2AE
United Kingdom

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom
+44 120 687 3374 (Phone)
+44 120 687 3151 (Fax)

Fernando Rios Avila

Bard College - The Levy Economics Institute ( email )

Blithewood, Bard College
Annandale, NY 12504-5000
United States

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