Dynamics and measurement error in household income data collected with single questions

Tullio, Federico (2025): Dynamics and measurement error in household income data collected with single questions.

Abstract

I provide insights into the dynamics of income collected in surveys using single questions, by extending to longitudinal settings a measurement error model previously developed in the literature. In this framework, single-question income data are validated against a benchmark provided by detailed source-by-source questions, which are considered the best practice for measuring income in surveys. I outline the assumptions required to infer benchmark income changes between two time periods (e.g., two subsequent survey waves), both at the macro- and micro-levels, when income is collected using single questions. Potential heterogeneity in respondents’ misreporting behaviour in single questions and its implications in longitudinal settings are also discussed. I apply the methodology to estimate income changes in Italy between 2022 and 2023, using data from a new web-survey conducted by the Bank of Italy. Dynamics and measurement error in household income data collected with single questions.

• Item Type: MPRA Paper
• Language: English
• Keywords: Income data, Measurement error, Data quality
• Subjects: C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs > C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data ; Data Access; C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs > C83 - Survey Methods ; Sampling Methods; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I39 - Other

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