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Title: Discrepancies in Estimates of the Growth in Earnings Inequality in the CPS and NLSY
Resulting in 1 citation.
1. Handcock, Mark S.
Morris, Martina
Bernhardt, Annette
Discrepancies in Estimates of the Growth in Earnings Inequality in the CPS and NLSY
Presented: New York, NY, Population Association of America Meetings, March 1999
Cohort(s): NLSY79
Publisher: Population Association of America
Keyword(s): Current Population Survey (CPS) / CPS-Fertility Supplement; Earnings; Part-Time Work; Underreporting; Wage Differentials

Permission to reprint the abstract has not been received from the publisher.

Recently Gottschalk and Moffitt (1997) analyzed three major longitudinal data sets from 1979-88 to see if the same trends in inequality appeared. They find that the National Longitudinal Survey of Young Men (NLSY) understates the rise in earnings inequality (compared to the CPS), thus raising serious questions about the validity of the NLSY for research on recent trends in inequality. In this paper we update the comparison of the NLSY and CPS to include the 1989-1994 surveys and use additional analyses to locate the sources of, and potential explanations for, the discrepancy between these two data sets. We find that the NLSY-CPS differential appears to be driven by part-time or part-year (PT/PY) workers' earnings. Underreporting by CPS PT/PY workers seems like the simplest explanation for this pattern, as the NLSY survey module on jobs and earnings is much more thorough than the CPS instrument.
Bibliography Citation
Handcock, Mark S., Martina Morris and Annette Bernhardt. "Discrepancies in Estimates of the Growth in Earnings Inequality in the CPS and NLSY." Presented: New York, NY, Population Association of America Meetings, March 1999.