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There are two restrictions that limit the reporting of high-income values on the ASEC: a data collection limit and a processing limit. Early questionnaires limited the reporting of income by restricting the number of digits available for recording an amount during data collection. This limit was set by the physical restriction of using an optical readable paper questionnaire environment. In 1967, the format of the ASEC questionnaire allowed for the recording of amounts up to $9,999. In 1970, income-recording limits were $99,999. In 1985, the limit for recording earnings from longest job increased to $299,999. In 1993 the physical restrictions imparted by a paper questionnaire virtually disappeared with the advent of computer-assisted data collection, where many of the income sources allowed the recording of amounts to $9,999,999. There were no cases in the 2000 to 2006 ASECs that exceeded the data collection limits for any of the four income sources examined: earnings from longest job, interest, dividends, and rent.
A data processing limit is applied to minimize the impact of recording (keying) errors, help maintain respondent confidentiality, and prevent volatility and distorting of annual statistics. A processing limit, however, compromises the survey’s coverage of the income distribution and could distort income inequality measures. Prior to 1993, income recording and processing limits were the same. Beginning with the 1994 ASEC, the processing limits for these four income sources were $1,099,999 for longest job earnings, $99,999 for interest and rent, and $100,000 for dividends.
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