Gross Income Non-Response in the German Socio-Economic Panel – Refusal or Don’t Know?

Abstract

Many validation studies deal with item non-response and measurement error in earnings data. In this paper we explore motives of respondents who fail to reveal earnings using the German Socio-Economic Panel (GSOEP). The GSOEP collects socio-economic information from private households in the Federal Republic of Germany. We explain the evolution of income non-response in the GSOEP and demonstrate the importance of distinguishing between a refusal to respond and a response of \don’t know”.