Missing values to income questions are common in survey data. When the probabilities of nonresponse are assumed to depend on the observed information and not on the underlining unobserved amounts, the missing income values are missing at random (MAR), and methods such as sequential multiple imputation can be applied. However, the MAR assumption is often considered questionable in this context, since missingness of income is thought to be related to the value of income itself, after conditioning on available covariates. In this article we describe a sensitivity analysis based on a pattern-mixture model for deviations from MAR, in the context of missing income values in a rotating panel survey. The sensitivity analysis avoids the well-known problems of underidentification of parameters of non-MAR models, is easy to carry out using existing sequential multiple imputation software and has a number of novel features.
Giusti, Caterina and Little, Roderick J., "AN ANALYSIS OF NONIGNORABLE NONRESPONSE IN A SURVEY WITH A ROTATING PANEL DESIGN" (March 2010). The University of Michigan Department of Biostatistics Working Paper Series. Working Paper 88.