Match Bias in Wage Gap Estimates Due to Earnings Imputation
Year: 2004
Type: article
Abstract: About 30% of workers in the Current Population Survey have earnings imputed. Wage gap estimates are biased toward zero when the attribute being studied (e.g., union status) is not a criterion used to match donors to nonrespondents. An expression for “match bias” is derived in which attenuation equals the sum of match error rates. Attenuation can be approximated by the proportion with imputed earnings. Union wage gap estimates with match bias removed are presented for 1973–2001. Estimates for recent years are biased downward 5 percentage points. 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