Administrative Social Security Data Linkage for Earnings Measurement
Observational StudyReview
Self-reported income survey data is highly vulnerable to recall error, intentional misreporting, and panel attrition over multi-year periods. Obtaining precise, objective longitudinal labor market data is necessary to reliably measure economic responses to policy interventions or wealth shocks.
Picture this
Instead of asking individuals to remember and report exact yearly income numbers from a decade ago, researchers obtain signed consent to link survey profiles directly to official government tax records. This creates an unalterable, objective earnings ledger covering years before and after a financial event.
What the evidence says
Administrative linkage secured 100% verified annual earnings histories across 13 consecutive years per individual, confirming pre-lottery earnings parallel trends between nonwinners ($15,600 to $18,000) and winners ($12,000 to $14,500) while eliminating recall measurement bias.
- Who was studied
- N = 496 human Massachusetts lottery players (259 nonwinners, 237 winners) who signed Social Security authorization releases.
- How
- Written authorization forms collected during survey administration were linked directly to Social Security Administration (SSA) records, establishing a 13-year continuous panel (6 years pre-lottery, winning year 0, and 6 years post-lottery).
What to do
1. Incorporate signed administrative record consent releases in survey protocols to replace self-reported retrospective income questions with official government earnings panels.
From the source
"We asked respondents to authorize the release of their Social Security earnings records to us. For those who signed the Social Security release forms, we have accurate earnings records for at least six years preceding and six years following the time of winning."
Estimating_the_Effect_of_Unearned_Income_on_Labor_Earnings,_Savings.pdf