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April 2006

Accounting for missing data in the Employment Cost Index

Song Yi

The Employment Cost Index (ECI) is compiled from information provided by employers and updated quarterly. Employers do not always provide all the information needed to compile the ECI. Therefore, an estimate is imputed for the missing data using information obtained from other similar establishments and employees. The imputed value provides a best guess for the missing data. New ECI procedures have improved the methods for dealing with missing values. The change incorporates the switch in industry and occupational classification--two of the core data elements used to match donors and recipients.

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