Relationship Between Household Nonresponse, Demographics, and Unemployment Rate in the Current Population Survey

Introduction In the Current Population Survey, a household survey from which labor force estimates are produced, selected housing units remain in sample during a 16-month period. The households are interviewed during the first 4 and last 4 months of this period. These interview months are referred to as “month-in-sample” (MIS) 1 to 8. Matching households between months allows an analysis of the relationship between nonresponse and estimates of the employment rate. Since change in employment may be related to the household’s participation, the estimates of employment status may be affected. A recent study by Tucker and Kojetin (1997) showed that unemployment rates were related to nonresponse in the CPS. “Converts” (households that do not participate in the prior month) do not completely make up for the number of “Attriters” (households that do not participate in the following month), so their relative effect may not be offset. Moreover, they may differ on important characteristics, e.g.; race, ethnicity, or gender. The current study examines the nature of this relationship through an analysis of demographics and nonresponse and their resulting effect on labor force estimates.