The 2008 SIPP panel offered widely used allocation flags for the earnings from each job or business: APMSUM1/2 and ABMSUM1/2. Given that we constructed the earnings “recode” variables TPMSUM1/2 and TBMSUM1/2 by combining responses to multiple instrument fields, it is not clear how one should construct allocation flag values for these variables. In constructing APMSUM1/2 and ABMSUM1/2, we made various decisions which do not necessarily align with decisions that a particular data user would have made. Moreover, the process by which we constructed TPMSUM1/2 and TBMSUM1/2 was rather complicated, yielding uncertainty in the informational content of APMSUM1/2 and ABMSUM1/2.
Recognizing these shortcomings of APMSUM1/2 and ABMSUM1/2 in the 2008 panel, we have endeavored to be more transparent in constructing allocation flags for earnings recodes in the 2014 panel. Although flags are present on the 2014 SIPP panel data file for our earnings recode variables, these allocation flags indicate only that data users should construct their own allocation flags for the earnings recode variables using the allocation flags for all of the variables that serve as inputs to these recode variables. Because we recognize that users will want access to more meaningful allocation flags for earnings recode variables, we have written sample code to construct allocation flags for TJB(n)_MSUM (for n=1,…,7) and TPEARN. Interested parties can find this code at the website of the Census Bureau’s Labor Force Statistics Branch.
This sample code will clarify to users which decisions must be made in order to construct AJB(n)_MSUM and APEARN. The code is written to be used without modification by the most conservative data user possible. In brief, AJB(n)_MSUM indicates imputation if any variable that determines TJB(n)_MSUM is imputed. More specifically:
Data users who prefer to make less conservative decisions about how to construct earnings recode allocation flags can comment out lines of code or add new code as needed.