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Variance Estimation for the National Compensation Survey When PSUs are Clustered Prior to the Second Phase of Sampling

Christopher J. Guciardo, Alan H. Dorfman, Lawrence R. Ernst, and M. Sverchkov


In this paper we investigate the accuracy of the current variance estimator used in the National Compensation Survey (NCS) and some design-based alternatives. The principal motivation for this study is that our current variance estimator is based in part on the assumption, which is not completely true in NCS, that the sampling of establishments is done independently in each sample area.