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Income reporting behaviour in sample surveys

Author

Listed:
  • Andrea Neri

    (Bank of Italy, Economics, Research and International Relations area)

  • Roberta Zizza

    (Bank of Italy, Economics, Research and International Relations area)

Abstract
This paper analyses respondents' behaviour when reporting their income sources in sample surveys and presents a method to deal with response error. Survey data relating to the number of earning recipients and to amounts received are validated using external information from administrative and statistical sources. Our findings suggest that the response bias on household income is about 12 per cent of reported figures. Misreporting is particularly severe for income from self-employment, financial assets and rents, as well as from secondary jobs. As to the distribution of response error, about 15 per cent of respondents show a high probability of misreporting. Misreporting is more diffuse among males, the older, the self-employed and respondents at the higher end of the earnings distribution.

Suggested Citation

  • Andrea Neri & Roberta Zizza, 2010. "Income reporting behaviour in sample surveys," Temi di discussione (Economic working papers) 777, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_777_10
    as

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    References listed on IDEAS

    as
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    Cited by:

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    2. M. Rosaria Marino & Roberta Zizza, 2012. "Personal Income Tax Evasion in Italy: An Estimate by Taxpayer Type," Chapters, in: Michael Pickhardt & Aloys Prinz (ed.), Tax Evasion and the Shadow Economy, chapter 3, Edward Elgar Publishing.
    3. M. Giovanna Ranalli & Alina Matei & Andrea Neri, 2023. "Generalised calibration with latent variables for the treatment of unit nonresponse in sample surveys," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 32(1), pages 169-195, March.
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    6. Giovanni D'Alessio & Andrea Neri, 2015. "Income and wealth sample estimates consistent with macro aggregates: some experiments," Questioni di Economia e Finanza (Occasional Papers) 272, Bank of Italy, Economic Research and International Relations Area.
    7. Chakravorty, Swastika & Goli, Srinivas, 2021. "Family Structure, Economic Outcomes and Perceived Change in Economic Well-being in India," OSF Preprints 23kvs, Center for Open Science.
    8. Jordi Muñoz, 2021. "The Catalan Syndrome? Revisiting the Relationship Between Income and Support for Independence in Catalonia," Politics and Governance, Cogitatio Press, vol. 9(4), pages 376-385.
    9. Carlo D’Ippoliti & Fabrizio Botti, 2017. "Sex Work among Trans People: Evidence from Southern Italy," Feminist Economics, Taylor & Francis Journals, vol. 23(3), pages 77-109, July.
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    11. Giulia Cifaldi & Andrea Neri, 2013. "Asking income and consumption questions in the same survey: what are the risks?," Temi di discussione (Economic working papers) 908, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    income distribution; response error; item response theory; SHIW; data accuracy.;
    All these keywords.

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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