A Large-Scale Validation Study of Measurement Errors in Longitudinal Survey Data

38 Pages Posted: 15 Oct 2006

See all articles by Nicolai Kristensen

Nicolai Kristensen

Aarhus School of Business

Niels Westergaard-Nielsen

Copenhagen Business School; IZA Institute of Labor Economics

Date Written: September 2006

Abstract

In this paper, we analyze measurement and classification errors in several key variables, including earnings and educational attainment, in a matched sample of survey and administrative longitudinal data. The data, spanning 1994-2001 and covering all sectors in the Danish economy, are much more comprehensive than usually seen in validation studies. Measurement errors in earnings are found to be much larger than reported in previous studies limited to one single firm. Individuals who attrite from the panel report their earnings significantly less accurate than individuals who are observed throughout the entire sampling period. Furthermore, females are found to report their earnings significantly more precise than males, part-time workers report significantly less accurate than full-time workers and low-income workers report significantly less accurate than workers with relatively higher income. Classification errors in categorical variables are found to be of about the same magnitude as previously found in the literature. We analyze whether response error in one variable makes it more likely that the same respondent will report other variables with error but do not find support for this hypothesis.

Keywords: measurement error, classification error, validation

JEL Classification: J24, J31, I2, J28

Suggested Citation

Kristensen, Nicolai and Westergaard-Nielsen, Niels, A Large-Scale Validation Study of Measurement Errors in Longitudinal Survey Data (September 2006). IZA Discussion Paper No. 2329. Available at SSRN: https://ssrn.com/abstract=937346

Nicolai Kristensen (Contact Author)

Aarhus School of Business ( email )

Haslegaardsvej 10
DK-8210 Aarhus, 8210
Denmark

Niels Westergaard-Nielsen

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

IZA Institute of Labor Economics

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

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