How does POSSLQ measure up? Historical estimates of cohabitation

We use March Current Population Survey (CPS) data from 1977 to 1997 to produce a new historical series of indirect cohabitation prevalence estimates. We compare our new estimates with those produced by the traditional method and evaluate the new estimates. We then compare the indirect estimates with the new direct estimates to investigate whether biases exist in the indirect estimates. Our findings indicate that the traditional indirect method of estimating cohabitation prevalence underestimates cohabitors in different subpopulations, especially among those with children. We also find that the new indirect measure produces relatively unbiased estimates of cohabitors' characteristics.