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Journal of Labor Economics Vol. 25 No. 3 2007

Measurement Error and Misclassification: A Comparison of Survey and Administrative Data

Arie Kapteyn1; Jelmer Y. Ypma2

1 RAND Corporation · 2 University of Groningen

Abstract

We provide both a theoretical and empirical analysis of the relation between administrative and survey data. By distinguishing between different sources of deviations between survey and administrative data we are able to reproduce several stylized facts. We illustrate the implications of different error sources for estimation in (simple) econometric models and find potentially very substantial biases. This article shows the sensitivity of some findings in the literature for the assumption that administrative data represent the truth. In particular, the common finding of substantial mean reversion in survey data largely goes away once we allow for a richer error structure.

DOI
10.1086/513298
Volume
25
Issue
3
Pages
513-551
Language
en
Sources
openalex crossref

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