Sergi Jiménez-Martín (Departamento de Economía, Universidad Carlos III de Madrid, Madrid 126, 28903 Getafe, Spain Facoltà di Economia, Università di Roma Tor Vergata, 00133 Roma, Italy) Franco Peracchi (Departamento de Economía, Universidad Carlos III de Madrid, Madrid 126, 28903 Getafe, Spain Facoltà di Economia, Università di Roma Tor Vergata, 00133 Roma, Italy)
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In this paper we examine a number of issues that arise in investigating labor force dynamics using the Spanish Labor Force Survey (EPA). These issues are by no means specific to the Spanish case and apply to most European-style labor force surveys. Our main conclusions may be summarized as follows. First, survey nonresponse cannot be neglected. Second, the EPA tends to underestimate employment and participation of high-educated young people, and to overestimate those of the low-educated elderly. Finally, we find little evidence that attrition causes important selection biases in estimating quarterly transition probabilities.
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Find related papers by JEL classification: C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
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