The Importance of Confidential Microdata for Economic Research

This chapter presents a data-driven analysis of the use and impact of U.S. confidential administrative data in economics research. Despite the high quality and growing use of these datasets, access remains heavily restricted due to privacy and security concerns. Our findings indicate that while confidential data significantly enhances research quality, as evidenced by higher publication rates in top journals and increased citations, its adoption is predominantly limited to established researchers from prestigious institutions. Our results contribute to the ongoing discussion on how to balance privacy protection with broader accessibility to confidential data.