A large-scale validation study of measurement errors in longitudinal survey data

Article type: Research Article

Authors: Kristensen, Nicolai^{a; *} | Westergaard-Nielsen, Niels^b

Affiliations: [a] Department of Economics, Aarhus School of Business & CCP, Denmark | [b] Department of Economics, Aarhus School of Business, CCP & IZA, Denmark

Correspondence: [*] Corresponding author: Aarhus School of Business, Prismet, Silkeborgvej 2, 8000 Aarhus C, Denmark. Tel.: +45 8948 6145; Fax: +45 8948 6197; E-mail: [email protected]

Abstract: We analyze measurement and classification errors in several key variables in a matched sample of survey and administrative longitudinal data on employees spanning 1994–2001. The data 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. A key finding is that employees who attrite from the panel report their earnings significantly less accurate than individuals who are observed throughout the entire sampling period.

Keywords: Measurement error, classification error, validation

DOI: 10.3233/JEM-2007-0283

Journal: Journal of Economic and Social Measurement, vol. 32, no. 2-3, pp. 65-92, 2007