Match bias from earnings imputation in the current population survey: The case of imperfect matching

Christopher R. Bollinger, Barry T. Hirsch

Research output: Contribution to journalReview articlepeer-review

75 Scopus citations

Abstract

This article examines match bias arising from earnings imputation. Wage equation parameters are estimated from mixed samples of workers reporting and not reporting earnings, the latter assigned earnings of donors. Regressions including attributes not used as imputation match criteria (e.g., union) are severely biased. Match bias also arises with attributes used as match criteria but matched imperfectly. Imperfect matching on schooling (age) flattens earnings profiles within education (age) groups and creates jumps across groups. Assuming conditional missing at random, a general analytic expression correcting match bias is derived and compared to alternatives. Reweighting a respondent-only sample proves an attractive approach.

Original languageEnglish
Pages (from-to)483-519
Number of pages37
JournalJournal of Labor Economics
Volume24
Issue number3
DOIs
StatePublished - Jul 2006

ASJC Scopus subject areas

  • Industrial relations
  • Economics and Econometrics

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