Errors in survey and administrative data on employment earnings: Austria and the United Kingdom compared

Author: Christopher R. Bollinger (University of Kentucky)Stephen P. Jenkins (LSE)Fernando Rios-Avila (Universidad Privada Boliviana)Iva V. Tasseva (LSE)
Posted: 5 August 2025

Abstract

We contribute new cross-national evidence about the nature of measurement errors in employment earnings, fitting the same error components model to harmonised earnings data for Austria and the UK. The model allows for measurement error in the administrative data and linkage error as well as survey measurement error. We find several cross-national similarities in error structure but also intriguing differences in error component probabilities, means, and dispersions.
JEL codes: C81, C83, D31
Keywords: measurement error, linkage error, earnings, linked survey data, administrative data, finite mixture models