Estimation of an Occupational Choice Model when Occupations are Misclassified
AbstractThis paper develops an empirical occupational choice model that corrects for misclassification in occupational choices and measurement error in occupation-specific work experience. The model is used to estimate the extent of measurement error in occupation data and quantify the bias that results from ignoring measurement error in occupation codes when studying the determinants of occupational choices and estimating the effects of occupation-specific human capital on wages. The parameter estimates reveal that 9 percent of occupational choices in the 1979 cohort of the NLSY are misclassified. Ignoring misclassification leads to biases that affect the conclusions drawn from empirical occupational choice models.
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Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Journal of Human Resources.
Volume (Year): 44 (2009)
Issue (Month): 2 ()
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Web page: http://jhr.uwpress.org/
Other versions of this item:
- Sullivan, Paul, 2006. "Estimation of an Occupational Choice Model when Occupations are Misclassified," MPRA Paper 862, University Library of Munich, Germany.
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
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