This article utilizes an exact match file between the 1978 March Curre
nt Population Survey and administrative records from the Social Securi
ty Administration to analyze errors in the reporting of annual income
using nonparametric methodology.The article extends work of Bound and
Krueger, and the results confirm many of the findings in Bound and Kru
eger. Three new findings are of interest: there is higher measurement
error in cross-sectional samples than in panels. The negative relation
ship between measurement error and earnings is driven largely by over
reporting among low earners. Median response errors are not related to
earnings.