Modelling errors in survey and administrative data on employment earnings : sensitivity to the fraction assumed to have error-free earnings

Stephen P. Jenkins, Fernando Rios-Avila

Kapteyn and Ypma (Journal of Labour Economics 2007) is an influential study of errors in survey and administrative data on employment earnings. To fit their mixture models, Kapteyn and Ypma assume a specific fraction of their sample have error-free earnings. Using a new UK dataset, we assess the sensitivity of model estimates and post-estimation statistics to variations in this fraction and find some lack of robustness.

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Year of publication:	April 2020
Authors:	Jenkins, Stephen ; Rios-Avila, Fernando
Publisher:	Bonn, Germany : IZA - Institute of Labor Economics
Subject:	measurement error \| misclassification error \| labour earnings \| Kapteyn-Ypma model \| Statistischer Fehler \| Statistical error \| Lohn \| Wages \| Arbeitsmarktstatistik \| Labour statistics