Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180467 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11449
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We develop and test an economic model of the cognitive and non-cognitive foundations of survey item-response behavior. We show that a summary measure of response behaviour - the survey item-response rate (SIRR) - varies with cognitive and less so with non-cognitive abilities, has a strong individual fixed component and is predictive of economic outcomes because of its relationship with ability. We demonstrate the usefulness of SIRR, although an imperfect proxy for cognitive ability, to reduce omitted-variable biases in estimated wage returns. We derive both necessary and sufficient conditions under which the use of an imperfect proxy reduces such biases, providing a general guideline for researchers.
Subjects: 
selection on unobservables
personality traits
survey item-response behavior
imperfect proxy variables
behavioral proxy
cognitive ability
JEL: 
J24
C18
C83
I20
J30
Document Type: 
Working Paper

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