Background
The PSID gathers data describing the circumstances of the family as a whole as well as data about particular individuals in the family. While some information is collected about all individuals in the family, the greatest level of detail is ascertained for the primary adult(s) heading the family (called the head and wife). The PSID has consistently achieved unprecedented response rates, and as a consequence of low attrition and the success in following young adults as they form their own families, the sample size has grown from 4,800 families in 1968, to 7000 families in 2001, to 7400 by 2005, and to more than 9,000 as of 2009. By 2003, the PSID had collected information on more than 65000 individuals. As of 2009, the PSID had information on over 70,000 individuals, spanning as many as 4 decades of their lives.
The structure of the PSID started with two distinct samples of individuals. A nationally representative sample designed by the Survey Research center became known as the SRC sample. The Census asked that a second sample of individuals, drawn from lower income levels be sampled, and this became known as the Survey of Economic Opportunity (SEO) sample. This second sample, though not nationally representative, allowed for more studies to investigate poverty in the United States. After this initial 1968 interview, families were interviewed each year until 1997. After 1997, the survey has been biannual, data being collected every two years. Over time, as individuals leave their household, they are tracked, and form a new head of household in their new residence. As time passed, the representativeness of the original sample became more and more out of line with the overall US demographic. To ameliorate the potential bias, two additional samples were added to the PSID. A third sample consisting of Latinos was added. Finally, in 1997, a new fourth Immigrant sample was added, and the other three reorganized. All three continued to be collected, but with a reduced number of households. The two "core" samples (SRC and SEO) were reduced to include 6168 families, and the Latino sample was reduced to 2000 families. To these, a new set of 441 families from the Immigrant sample created a study group capable of tracking the current demographics in the US.
The method of interviewing in the PSID has changed over time. Until 1972, interviews were done in person using paper, but after 1973 phone interviews were used. Starting in 1993, interviews were conducted using Computer Assisted Telephone (CAT) technology.
Read more about this topic: Panel Study Of Income Dynamics
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