Validation Study of Earnings Data in the SIPP – Do Older Workers Have Larger Measurement Error?

Abstract

The Survey of Income and Program Participation (SIPP) is a potentially useful data set to study earnings and retirement dynamics of older workers. Respondents’ self-reported work and earnings in the SIPP are, however, likely to be measured with error, and this measurement error may be particularly large for older respondents who work non-standard hours. We explore the extent of measurement error by comparing SIPP employment and earnings data to administrative records contained in the matched Detail Earning Record.