Measurement Error in the Current Population Survey: A Nonparametric Look

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Abstract
This article utilizes an exact match file between the 1978 March Current Population Survey and administrative records from the Social Security Administration to analyze errors in the reporting of annual income using nonparametric methodology. The article extends work of Bound and Krueger, and the results confirm many of the findings in Bound and Krueger. Three new findings are of interest: there is higher measurement error in cross‐sectional samples than in panels. The negative relationship between measurement error and earnings is driven largely by overreporting among low earners. Median response errors are not related to earnings.

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