Does Repeated Measurement Improve Income Data Quality?1. (20th January 2019)

• Record Type: Journal Article
• Authors: Fisher, Paul
• Is Part Of: Oxford bulletin of economics and statistics. Volume 81:Number 5(2019)
• Page Start: 989
• Page End: 1011
• Publication Date: 2019-01-20
• Subjects: Economic history -- Periodicals; Great Britain -- Economic conditions -- Periodicals; 330.9
• DOI: 10.1111/obes.12296
• Languages: English
• ISSNs: 0305-9049

Abstract

Abstract: This paper exploits a natural experiment created by a survey design to show that the quality of income data systematically changes across waves of a panel. We estimate that the effect of being interviewed for a second time, relative to the first, is to increase mean monthly income by 8%. Dependent interviewing – a recall device commonly used in panel surveys – explains one third of the observed increase. The remaining share is attributed to changes in respondent behaviour (panel conditioning). We review the evidence for and against a reporting improvement vs. a behavioural response by survey participants.