Exploring the workplace location problem in the Annual Survey of Hours and Earnings

Whittard, Damian; Ritchie, Felix; Phan, Van; Forth, John; Bryson, Alex; Stokes, Lucy; Singleton, Carl; McKenzie, Arusha

Abstract

The Annual Survey of Hours and Earnings (ASHE) is an important source of longitudinal linked employer-employee payroll earnings data for Britain. It provides accurate information on employees’
hours and earnings and information on the location of employees and their place of work. This paper examines the accuracy of the workplace location in the data following concerns that the pre-filling of that data item by ONS in paper questionnaires results in measurement error. By linking the employee’s workplace in ASHE to the same organisations in the Business Structure Database (BSD), and by examining employee commuting distances, we confirm that there is systematic measurement error in the recording of the workplace location in the ASHE among organizations where the survey is
administered via a paper questionnaire. The study suggests a number of alternative approaches to improve the quality of the data and reduce the potential for biased estimates. This is particularly
important in the context of regional earnings differentials, with their attendant implications for the levelling-up policy agenda.

• Working Paper Type: Working Paper
• Deposit Date: Oct 24, 2022
• Publicly Available Date: Oct 24, 2022
• Public URL: https://uwe-repository.worktribe.com/output/10105363