Household income data reports in mail surveys

An empirical study was conducted to assess the quality of reported household income data in the context of a mail survey, where quality was measured in terms of the difference between actual household income and reported household income. In the study, nonresponse error was found to be greater than response error (distortions in reporting household income), although both were statistically significant. Under- and overreporting of household income were found to be associated with absolute income levels, and several possible reasons for under- and overreporting were hypothesized.