Netting down gross earnings data in the LIS database: an evaluation of two procedures

Rense Nieuwenhuis, Teresa Munzi, Janet C. Gornick

Research output: Book/ReportReportProfessional

16 Downloads (Pure)

Abstract

LIS researchers who seek to perform country-comparative and / or trend analyses have to account for the fact that in some LIS datasets income variables were reported net of taxes and social security contributions, while in other datasets income variables were reported gross of taxes and social security contributions. In this technical paper we discuss, develop, and evaluate two `netting down procedures' that help reduce bias that would be introduced by directly comparing net and gross datasets. Results of evaluating the performance of these netting down procedures indicate that the validity of the comparison of net and gross datasets can be greatly improved when netting down procedures are applied. In several cases, however, substantial amounts of bias remain.
Original languageEnglish
Place of PublicationLuxembourg
PublisherLIS Cross-National Data Center
Publication statusPublished - 2013

Publication series

NameLIS technical working paper series
PublisherLIS Cross-National Data Center
No.6
Volume6

Keywords

  • IR-86746
  • METIS-297006

Fingerprint Dive into the research topics of 'Netting down gross earnings data in the LIS database: an evaluation of two procedures'. Together they form a unique fingerprint.

Cite this