Welfare receipt misreporting in survey data and its consequences for state dependence estimates: new insights from linked administrative and survey data

Journal for Labour Market Research

Table 7 Transitions among the four labour market states between t−1 and t

State at time t−1	State at time t
State at time t−1	Benefit receipt	Benefit receipt and employment	Inactivity	Employment
Panel A: PASS survey data
Benefit receipt	3480	572	239	404
Benefit receipt	74%	12%	5%	9%
Benefit receipt and employment	468	1492	54	480
Benefit receipt and employment	19%	60%	2%	19%
Inactivity	218	49	858	522
Inactivity	13%	3%	52%	32%
Employment	184	264	487	12,228
Employment	1%	2%	4%	93%
Total	4350	2377	1638	13,634
Panel B: administrative data
Benefit receipt	3567	688	196	339
Benefit receipt	74%	14%	4%	7%
Benefit receipt and employment	546	1755	41	527
Benefit receipt and employment	19%	61%	1%	18%
Inactivity	151	39	881	481
Inactivity	10%	3%	57%	31%
Employment	144	212	462	11,970
Employment	1%	2%	4%	94%
Total	4408	2694	1580	13,317

First row shows the absolute numbers of labour market transitions between t−1 and t. Second row shows labour market transitions between t−1 and t as a share of the labour market state in t−1
Source: PASS_0614_v1 & LHG V08.01.00 – 201504