Trouble in the tails? What we know about earnings nonresponse 30 years after lillard, smith, and welch

Christopher R. Bollinger, Barry T. Hirsch, Charles M. Hokayem, James P. Ziliak

Research output: Contribution to journalArticlepeer-review

86 Scopus citations

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.

Original languageEnglish
Pages (from-to)2143-2185
Number of pages43
JournalJournal of Political Economy
Volume127
Issue number5
DOIs
StatePublished - Oct 1 2019

Bibliographical note

Publisher Copyright:
© 2019 by The University of Chicago. All rights reserved.

ASJC Scopus subject areas

  • Economics and Econometrics

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