Abstract
SIPP is examined for its uses for economic research, particularly as a basis for estimating causal relationships between labor market outcomes and potential policy variables. The Current Population Survey dominates SIPP as a provider of descriptive statistics for most, but not all, purposes. As a large longitudinal survey, extending for up to 32 months, and with rich data on income, wages, and other variables, SIPP has unique advantages for dynamic analysis of labor force behavior that is described by short or moderate durations, such as unemployment. Examples of historical and contemporary research studies are discussed to illustrate the strengths and weaknesses of SIPP. Among several recommendations for using SIPP, it is argued that the most important is to obtain market characteristics for the city or county locations of the survey respondents.
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