Match Bias in Wage Gap Estimates Due to Earnings Imputation
Year: 2004
Type: article
Abstract: About 30% of workers in the CPS have earnings imputed. Wage gap estimates are biasedtoward zero when the attribute being studied (e.g., union status) is not a criterion used tomatch donors to nonrespondents. An expression for match bias is derived in whichattenuation equals the sum of match error rates. In practice, attenuation can be approximatedby the proportion with imputed earnings. Union wage gap estimates with match bias removedare presented for 1973-2001. Estimates in recent years are biased downward 5 percentagepoints. Bias in gap estimates accompanying other non-match criteria (public sector, industry,etc.) is examined.
Source: Journal of Labor Economics
DOI: 10.1086/383112
Authors: Barry T. Hirsch, Edward J. Schumacher
Institutions: IZA - Institute of Labor Economics, Trinity University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Reduced inequalities
Open Access status: green
OpenAlex ID: W3122449408