The Analysis of the Impact of Panel Attrition on Estimation of Regular-Irregular Worker Wage Gap in the KLIPS
AbstractThe aim of this paper is analyzing the effect of panel attrition on estimation of regular-irregular worker wage gap using KLIPS (Korean Labor and Income Panel Study). Using two wave sub-panels of KLIPS, we first analyze the characteristics of attritions. We find that the nonrandom attrition has occurred and it causes the underestimation of regular-irregular worker wage gap. Second, we decompose the attrition bias into ‘ability bias’ and ‘distortion bias’. And third we develop the estimation strategies to reduce the bias. We have found that the bias is not negligible although it has been attenuated by change of job of workers.
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Bibliographic InfoArticle provided by European Research Studies Journal in its journal European Research Studies Journal.
Volume (Year): XIII (2010)
Issue (Month): 4 ()
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Web page: http://www.ersj.eu/
Panel Attrition; Sample Selection; Wage Gap; IPW Method;
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- C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
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