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A record check study conducted on the 1984 Survey of Income and Program Participation (SIPP) in 4 states, showed underreporting rates for 3 income programs at around 25% and even higher for the unemployment insurance program (see Figure 1). These errors not only distort estimates of means and percentages but also, as Bollinger and David (1993, 1994) have shown, distort estimates of relationships in important policy models that rely on SIPP data.
This led us to design new interviewing procedures with the goal of reducing SIPP underreporting error by at least 25% for these major transfer income programs.
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