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Moving Beyond Linear Regression: Implementing and Interpreting Quantile Regression Models With Fixed Effects

Author

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  • Fernando Rios-Avila
  • Michelle Lee Maroto

Abstract

Quantile regression (QR) provides an alternative to linear regression (LR) that allows for the estimation of relationships across the distribution of an outcome. However, as highlighted in recent research on the motherhood penalty across the wage distribution, different procedures for conditional and unconditional quantile regression (CQR, UQR) often result in divergent findings that are not always well understood. In light of such discrepancies, this paper reviews how to implement and interpret a range of LR, CQR, and UQR models with fixed effects. It also discusses the use of Quantile Treatment Effect (QTE) models as an alternative to overcome some of the limitations of CQR and UQR models. We then review how to interpret results in the presence of fixed effects based on a replication of Budig and Hodges’s work on the motherhood penalty using NLSY79 data.

Suggested Citation

  • Fernando Rios-Avila & Michelle Lee Maroto, 2024. "Moving Beyond Linear Regression: Implementing and Interpreting Quantile Regression Models With Fixed Effects," Sociological Methods & Research, , vol. 53(2), pages 639-682, May.
    • Handle: RePEc:sae:somere:v:53:y:2024:i:2:p:639-682
    DOI: 10.1177/00491241211036165
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