JSM 2004 - Toronto

Abstract #301299

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Activity Number: 159
Type: Contributed
Date/Time: Monday, August 9, 2004 : 2:00 PM to 3:50 PM
Sponsor: Business and Economics Statistics Section
Abstract - #301299
Title: Accounting for Imputation in Estimating the Variance of CPS Earnings
Author(s): Anne E. Polivka*+ and Martha Duff
Companies: Bureau of Labor Statistics and Bureau of Labor Statistics
Address: Suite 4945, Washington, DC, 20212,
Keywords: missing data ; CPS ; imputation ; wage and salary ; variance estimation
Abstract:

The Current Population Survey (CPS) provides timely data on the earnings of a large sample of wage and salary workers every month along with information about workers' demographic characteristics, their industry and occupation of employment, their hours of work, and their union status. Depending on the stringency of the criterion used, the nonresponse rate to the earnings questions in the CPS recently has been between 20-30%. Data for CPS responders who do not answer the earnings questions is generated using a hot-deck methodology. After documenting the hot-deck methodology used to impute earnings data, this paper examines the effect of imputation on earnings estimates derived from the CPS including means and coefficients from OLS regressions with a particular emphasis on the effect of imputation on the variance of these estimates. The paper concludes with exploration of ways to incorporate imputation into the calculation of the variance estimates.

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