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We propose a two-phase synthesis process for synthesizing income, a sensitivevariable which is usually highly-skewed and has a number of reported zeros. Weconsider two forms of a continuous income variable: a binary form, which ismodeled and synthesized in phase 1; and a non-negative continuous form, whichis modeled and synthesized in phase 2. Bayesian synthesis models are proposedfor the two-phase synthesis process, and other synthesis models are readilyimplementable. We demonstrate our methods with applications to a sample fromthe National Health Interview Survey (NHIS). Utility and risk profiles ofgenerated synthetic datasets are evaluated and compared to results from asingle-phase synthesis process.

Two-Phase Data Synthesis for Income: An Application to the NHIS