Identifying the effect of parental incomes on child outcomes is difficult due to the correlation of unobserved ability, education levels and income. Previous research has relied on the use of instrumental variables to identify the effect of a change in household income on the young adult...

I report the measurement error in self-reported earnings for a developing country.Administrative data from the Federated States of Micronesia`s (FSM) Social Security officeare matched to the FSM Census data for the wage sector employed. I find that the error inannual self-reported earnings is...