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| Format: | Preprint |
| Published: |
2025
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2501.03015 |
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| _version_ | 1866911125961965568 |
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| author | Thurow, Nico |
| author_facet | Thurow, Nico |
| contents | This paper exploits the linkage of German administrative social security data (German: Integrierte Erwerbsbiografien) and survey data from the socio-economic panel (Sozio-ökonomisches Panel, SOEP) for the characterization of measurement error in metrics quantifying individual-specific labor earnings in Germany. We find that survey participants' decision whether to consent to linkage is non-random based on observables. In that sense, the studied sample does not constitute a random sample of SOEP. Further, measurement error is not classical and differential: We observe underreporting of income on average, autocorrelation, and non-zero correlation with the true signal and other observable characteristics. In levels, calculated reliability ratios above 0.94 hint at a relatively small attenuation bias in simple linear univariate regressions with earnings as the explanatory variable. For one-period changes in income the bias from measurement error is exacerbated. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2501_03015 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Characterizing Measurement Error in the German Socio-Economic Panel Using Linked Survey and Administrative Data Thurow, Nico General Economics Economics This paper exploits the linkage of German administrative social security data (German: Integrierte Erwerbsbiografien) and survey data from the socio-economic panel (Sozio-ökonomisches Panel, SOEP) for the characterization of measurement error in metrics quantifying individual-specific labor earnings in Germany. We find that survey participants' decision whether to consent to linkage is non-random based on observables. In that sense, the studied sample does not constitute a random sample of SOEP. Further, measurement error is not classical and differential: We observe underreporting of income on average, autocorrelation, and non-zero correlation with the true signal and other observable characteristics. In levels, calculated reliability ratios above 0.94 hint at a relatively small attenuation bias in simple linear univariate regressions with earnings as the explanatory variable. For one-period changes in income the bias from measurement error is exacerbated. |
| title | Characterizing Measurement Error in the German Socio-Economic Panel Using Linked Survey and Administrative Data |
| topic | General Economics Economics |
| url | https://arxiv.org/abs/2501.03015 |