Misclassification error when identifying job stayers in the Current Population Survey
نویسنده
چکیده
I evaluate the degree of misclassification error in Card and Hyslop’s (1997) method for identifying job stayers in the Current Population Survey (CPS). Benchmarking to job tenure data from the biennial CPS job tenure supplement, I find that Card and Hyslop’s method, which relies on industry and occupation codes, misclassifies approximately one-third of hourly workers. However, I also find that these errors do not substantially distort estimates of downward nominal wage rigidity. The reason is that industry and occupation miscoding is essentially random.
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