On the Validity of Using Census Geocode Characteristics to Proxy Individual Socioeconomic Characteristics

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Abstract
Investigators of social differentials in health outcomes commonly augment incomplete microdata by appending socioeconomic characteristics of residential areas (such as median income in a zip code) to proxy for individual characteristics. But little empirical attention has been paid to how well this aggregate information serves as a proxy for the individual characteristics of interest. We build on recent work addressing the biases inherent in proxies and consider two health-related examples within a statistical framework that illuminates the nature and sources of biases. Data from the Panel Study of Income Dynamics and the National Maternal and Infant Health Survey are linked to census data. We assess the validity of using the aggregate census information as a proxy for individual information when estimating main effects and when controlling for potential confounding between socioeconomic and sociodemographic factors in measures of general health status and infant mortality. We find a general, but...

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