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Australian Labour Force Data: How Representative is the ‘Population Represented by the Matched Sample’?

This paper investigates two related matters. First, what proportion of the population is represented by the matched sample (i.e. by the gross flows data) in the Labour Force Survey, why is this proportion what it is and why does it vary over time? Second, given that around 20% of the population are not represented in the matched sample, how representative are labour market indices derived from the matched sample data and, if biases are present, what is the source and what are the implications of the bias?