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Mismeasurement of Usual Hours Worked In the Census and ACS
Nathaniel Baum-Snow1, Derek Neal
1Brown University & NBER.
Summary
Wage data from censuses and the American Community Survey (ACS) are useful but contain errors. These errors lead to unrealistic wage calculations for part-time workers, impacting labor market analysis.
Area of Science:
- Labor economics
- Demographic analysis
- Statistical methodology
Background:
- Decennial censuses and the American Community Survey (ACS) provide crucial data for economic research.
- Accurate wage rate calculation is essential for understanding labor market dynamics.
- Previous studies have relied on census and ACS data for wage estimations.
Purpose of the Study:
- To evaluate the accuracy of wage rate calculations derived from census and ACS data.
- To identify and analyze errors in reporting usual hours worked.
- To assess the impact of these errors on implied wage rates for part-time workers.
Main Methods:
- Analysis of data from recent decennial censuses and the American Community Survey (ACS).
- Examination of reported usual hours worked during the past year.
- Calculation of implied average hourly wage rates.
Main Results:
- Data on usual hours worked contain reporting errors.
- These errors result in implausible wage figures for individuals working part-time.
- The inaccuracies affect the reliability of wage rate estimations.
Conclusions:
- The current methodology for calculating wage rates using census and ACS data is flawed.
- Reporting errors in usual hours worked significantly distort part-time wage calculations.
- Methodological improvements are needed to ensure accurate labor market data.
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