Comparing retrospective and panel data collection methods to assess labor market dynamics

Abstract

There is potential for measurement problems in both retrospective and panel microdata. In this paper, we compare results on basic indicators related to labor markets and their dynamics from retrospective and panel survey data in Egypt, in order to determine the conditions under which results are similar or different. Specifically, we (1) assess the consistency of reporting of time-invariant characteristics in different waves of the panel, (2) compare the retrospective and panel data results on past labor market statuses, (3) assess the consistency of estimates of labor market transition rates across two specific dates by comparing panel and retrospective data, (4) assess the consistency of estimates of the level and trends of annual labor market transition rates across retrospective data from different waves of the survey, and (5) assess whether retrospective data can provide accurate trends of labor market aggregates, such as unemployment rates. We find that it is possible to garner useful information on labor market dynamics from retrospective data, but one must be cautious about which information to trust and at what level of detail. We conclude with a discussion of implications for future research as well as future survey design.

Informality, public employment and employment protection in developing countries

“…Separations in both sectors increased showing that the effect of the reduced firing taxes has dominated in that case. While job findings in the formal sector increased after the reform in 2004 by about transitions between the different employment sectors, given the structure of the dataset and the samples' sizes discussed in Yassin (2015) and Assaad et al (2016). 0.6% , the informal sector experienced an insignificant deterioration in its job finding rates by 0.8%.…”

“…Longitudinal annual retrospective panels are extracted to be able to compute the transition rates of male workers, ages 15-49, between the different employment and/or unemployment sectors, over the period 1997-2010 9 . The recall and design bias, which these retrospective panels suffer from (Assaad et al, 2016), is corrected by using the markovian structure of these transitions by applying a simulated method of moments, as proposed by Langot and Yassin (2015). Only Cross-sectional wages for each employment sector are available i.e.…”

Does the type of higher education affect labor market outcomes? Evidence from Egypt and Jordan

“…Retrospective labor market histories in the region tend to be of good quality overall in validation studies (Assaad, Krafft, & Yassin, 2016), but some aspects are better captured than others; for instance regularity of work tends to be poorly measured. While measurement error in the outcome variables, if random, should not affect our estimates, there may also be recall error in other characteristics that can lead to attenuation bias.…”

Using experimental manipulation of questionnaire design and a Kenyan panel to test for the reliability of reported perceptions of climate change and adaptation

“…For example, farmers may also suffer from various forms of recall bias when asked to state adaptations that they have made, (Beegle et al (2012)) especially when they are asked to think about changes over long periods of time for which accurate paper or digital records are not available. In a one shot or cross sectional study, recall bias or inaccuracy may be hard to check (Assaad et al (2018)). Moreover, recall bias and question format effects may interact, if for example the saliency of particular adaptations are also affected by the open-ended or closed methods used to obtain perceptions of climate change.…”