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 on the same individuals 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
Highlights
The analysis of labor market dynamics requires the availability of data about the same individuals at multiple points in time
Marriage is an enormous investment for young people and their families, and the cost of marriage and its trends in Egypt and in the Middle East and North Africa (MENA) region are the subject of substantial concern and discussion (Singerman and Ibrahim 2003; Singerman 2007; Assaad and Ramadan 2009; Dhillon and Yousef 2009; Salem 2014, 2015, 2016; Assaad and Krafft 2015a, b)
5 Conclusions The primary objective of this paper is to assess the accuracy of labor market dynamics using retrospective data
Summary
The analysis of labor market dynamics requires the availability of data about the same individuals at multiple points in time. Data about the same individuals over time can either be in the form of panel data, where individuals are visited and interviewed multiple times over the course of several months or years, or retrospective data, where individuals are asked about their past labor market trajectories at one point in time Both methods of data collection suffer from different kinds of measurement errors, panel data are often deemed superior because they minimize recall error, which could be substantial in retrospective data (Mathiowetz and Duncan 1988; Magnac and Visser 1999; Artola and Bell 2001; Bound et al 2001; Pina-Sánchez et al 2014). It is useful to examine how well retrospective data perform in assessing labor market dynamics and the extent to which analyses that depend on them conform to results obtained from panel data
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