I am using yearly data from IPUMS CPS for an empirical analysis at the individual level. From the FAQs on the IPUMS CPS website I understood that I need to use the sample weights (WTSUPP) in order to obtain correct estimates. My analysis is in Stata, so I intend to use the command “svyset”. I am having difficulties in finding the information and understanding from the website of IPUMS CPS what exactly are the following parameters that I need to specify in Stata:
First, a couple notes about the various person-level weight variables available for use in the CPS data: WTFINL is a person-level weight that should be used in analyses of CPS basic monthly data. When analyzing ASEC data, researchers should use the person-level weight WTSUPP. Finally, EARNWT should be used for any analysis including a small number of person-level variables (EARNWEEK, HOURWAGE, PAIDHOUR, and UNION).
Second, STATA has several commands that can be used to weight sample data. Here is a bit of the documentation from STATA about the weight options that can be added onto the end of most STATA commands. Typically, the “pweight” option is what should be used with microdata. However, there is not one single “correct” way to weight data, so be sure to take a look at the STATA documentation.