Stephen Jenkins, London School of Economics

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Title: Reconciling reports: modelling employment earnings and measurement errors using linked survey and administrative data
(with Fernando Rios-Avila)

Abstract: We contribute new UK evidence about measurement errors and employment earnings to a field dominated by findings about the USA. We develop and apply new statistical models for linked survey and administrative data that generalize those of Kapteyn and Ypma (Journal of Labor Economics, 2007). Our models incorporate four types of measurement error: (1) mean-reverting measurement error in the survey reports; (2) ‘reference period’ error (mismatch between survey and administrative source definitions); (3) error in the linking of survey and administrative sources; and (4) mean-reverting measurement error in the administrative source. In addition, we allow error distributions to differ across individuals, which improves model fit and allows us to investigate substantive hypotheses about factors associated with error bias and variance.

Presenter: Stephen Jenkins, London School of Economics

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