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Match Bias in Wage Gap Estimates Due to Earnings Imputation
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.
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Cites
Empirical Strategies in Labor Economics
Angrist, J. D., & Krueger, A. B. (1999) · Handbook of Labor Economics · doi:10.1016/s1573-4463(99)03004-7 · Cited by 1,628
Longitudinal Analyses of the Effects of Trade Unions
Freeman, R. B. (1984) · Journal of Labor Economics · doi:10.1086/298021 · Cited by 479
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The Effect of Minimum Wages on Low-Wage Jobs*
Cengiz, D., Dube, A., Lindner, A., & Zipperer, B. (2019) · The Quarterly Journal of Economics · doi:10.1093/qje/qjz014 · Cited by 2,688
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Acemoglu, D., & Autor, D. (2010) · doi:10.3386/w16082 · Cited by 2,180
Financial literacy and its consequences: Evidence from Russia during the financial crisis
Klapper, L., Lusardi, A., & Panos, G. A. (2013) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2013.07.014 · Cited by 523
More Power to the Pill: The Impact of Contraceptive Freedom on Women's Life Cycle Labor Supply
Bailey, M. J. (2006) · The Quarterly Journal of Economics · doi:10.1093/qje/121.1.289 · Cited by 497
Metadata
- Authors
- Hirsch, B. T., & Schumacher, E. J.
- Venue
- Journal of Labor Economics
- Publisher
- University of Chicago Press
- Published
- 2004-07
- Volume
- 22
- Issue
- 3
- Pages
- 689-722
- ISSN
- 0734-306X (ISSN-L)
- 1537-5307
- OpenAlex
- W3122449408
- Cited by
- 263
- References
- 2
- FWCI
- 32.40
- Type
- journal article
- Language
- en
- Open access
- closed
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