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Measurement error in earnings data: Using a mixture model approach to combine survey and register data.


ABSTRACT: Survey data on earnings tend to contain measurement error. Administrative data are superior in principle, but they are worthless in case of a mismatch. We develop methods for prediction in mixture factor analysis models that combine both data sources to arrive at a single earnings figure. We apply the methods to a Swedish data set. Our results show that register earnings data perform poorly if there is a (small) probability of a mismatch. Survey earnings data are more reliable, despite their measurement error. Predictors that combine both and take conditional class probabilities into account outperform all other predictors.

SUBMITTER: Meijer E 

PROVIDER: S-EPMC3604906 | biostudies-literature | 2012

REPOSITORIES: biostudies-literature

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Measurement error in earnings data: Using a mixture model approach to combine survey and register data.

Meijer Erik E   Rohwedder Susann S   Wansbeek Tom T  

Journal of business & economic statistics : a publication of the American Statistical Association 20120524 2


Survey data on earnings tend to contain measurement error. Administrative data are superior in principle, but they are worthless in case of a mismatch. We develop methods for prediction in mixture factor analysis models that combine both data sources to arrive at a single earnings figure. We apply the methods to a Swedish data set. Our results show that register earnings data perform poorly if there is a (small) probability of a mismatch. Survey earnings data are more reliable, despite their mea  ...[more]

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