Estimating Measurement Error in Annual Job Earnings : A Comparison of Survey and Administrative Data ∗

@inproceedings{Abowd2012EstimatingME,
  title={Estimating Measurement Error in Annual Job Earnings : A Comparison of Survey and Administrative Data ∗},
  author={John M. Abowd and Martha H. Stinson},
  year={2012}
}
Unlike most previous validation studies, we propose a new methodology that assumes all sources are noisy measures of some underlying true value and that there is no prior specification of the statistical properties of the measurement errors. We fit a multivariate linear mixed-effects model conditioning on demographic groups, education, experience, person, and employer to quantify the sources of variation in all observable measures. We show that the unobservable true value can be represented as… CONTINUE READING