Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185170 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11710
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Earnings nonresponse in household surveys is widespread, yet there is limited knowledge of how nonresponse biases earnings measures. We examine the consequences of nonresponse on earnings gaps and inequality using Current Population Survey individual records linked to administrative earnings data. The common assumption that earnings are missing at random is rejected. Nonresponse across the earnings distribution is U-shaped, highest in the left and right tails. Inequality measures differ between household and administrative data due in part to nonresponse. Nonresponse biases earnings differentials by race, gender, and education, particularly in the tails. Flexible copula-based models can account for nonrandom nonresponse.
Subjects: 
CPS ASEC
nonresponse bias
copula
measurement error
hot deck imputation
proxy reports
earnings inequality
JEL: 
J31
C8
D31
Document Type: 
Working Paper

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