Australian gross flows data: the labour force survey and the size of the population represented by the matched sample

In this paper we look at the way in which the Australian Bureau of Statistics (ABS) derives gross flows data from successive Labour Force Surveys. The procedure used by the ABS is described and a measure of the ‘matching rate’ obtained. We develop a simple theoretical model designed to explore the relationship between the Labour Force Survey response rate(s) and the size of the matched sample relative to the potentially matched number of persons. We report the results of an econometric model of the evolution over time of the size of the matched sample relative to the potentially matched number of persons. The paper should be of interest not only to researchers interested in Australian Gross Flows data but also to anyone who uses data generated by the monthly Labour Force Survey.