Measurement Error in Earnings Data: Replication of Meijer, Rohwedder, and Wansbeek's Mixture Model Approach to Combining Survey and Register Data

31 Pages Posted: 15 Mar 2021 Last revised: 16 Apr 2023

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

Meijer, Rohwedder, and Wansbeek (MRW, Journal of Business & Economic Statistics, 2012) develop methods for prediction of a single earnings figure per worker from mixture factor models fitted using earnings data from multiple linked data sources. MRW apply their method using parameter estimates of Kapteyn and Ypma's mixture factor model (KY, Journal of Labour Economics 2007) fitted to earnings data for Swedish workers aged 50+. First, we replicate MRW's empirical analysis using the Swedish model estimates. Second, we check the generality of their empirical finding with a new application. Using estimates of a KY model fit to a linked dataset on earnings for UK employees of all ages, we confirm that MRW's principal findings about the performance of their various predictors of true earnings also hold in this different setting.

Keywords: labour earnings, earnings prediction, measurement error, mixture factor model, Kapteyn-Ypma model

JEL Classification: C81, C83, D31

Suggested Citation

Jenkins, Stephen P. and Rios Avila, Fernando, Measurement Error in Earnings Data: Replication of Meijer, Rohwedder, and Wansbeek's Mixture Model Approach to Combining Survey and Register Data. IZA Discussion Paper No. 14172, Available at SSRN: https://ssrn.com/abstract=3803716 or http://dx.doi.org/10.2139/ssrn.3803716

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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