Correcting for Survival Effects in Cross Section Wage Equations Using NBA Data
AbstractCross sectional employment data is not random. Individuals who survive to a longer level of tenure tend to have a higher level of productivity than those who exit earlier. This result suggests that in cross sectional data high productivity workers are over-sampled at high levels of tenure. In wage equations using cross sectional data, results could be biased from the over sampling of high productive workers at long levels of tenure. This survival effect in cross sectional data could possibly bias the coefficient on tenure upwards. We explore techniques to correct for survival bias using a panel study of National Basketball Association players. In particular we focus on a modified Heckman selectivity bias procedure using duration models to correct for survival bias. Key Words:
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, Appalachian State University in its series Working Papers with number 09-19.
Date of creation: 2009
Date of revision:
Contact details of provider:
Postal: Thelma C. Raley Hall, Boone, North Carolina 28608
Web page: http://www.business.appstate.edu/departments/economics/
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-05 (All new papers)
- NEP-ECM-2009-09-05 (Econometrics)
- NEP-LAB-2009-09-05 (Labour Economics)
- NEP-SPO-2009-09-05 (Sports & Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Mark C. Berger & Dan A. Black, 1998.
"The Duration Of Medicaid Spells: An Analysis Using Flow And Stock Samples,"
The Review of Economics and Statistics,
MIT Press, vol. 80(4), pages 667-675, November.
- Mark C. Berger & Dan A. Black, 1996. "The Duration of Medicaid Spells: An Analysis Using Flow and Stock Samples," HEW 9604003, EconWPA.
- Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
- Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December.
- Peter A. Groothuis & James Richard Hill, 2008.
"Exit Discrimination in Major League Baseball: 1990–2004,"
Southern Economic Journal,
Southern Economic Association, vol. 75(2), pages 574-590, October.
- Peter A. Groothuis & Richard Hill, 2007. "Exit Discrimination in Major League Baseball: 1990-2004," Working Papers 07-02, Department of Economics, Appalachian State University.
- Peter A. Groothuis & Jana D. Groothuis, 2006. "Nepotism or Family Tradition?: A Study of NASCAR Drivers," Working Papers 06-11, Department of Economics, Appalachian State University.
- Katharine G. Abraham & Henry S. Farber, 1987.
"Job Duration, Seniority, and Earnings,"
NBER Working Papers
1819, National Bureau of Economic Research, Inc.
- Mark C. Berger & Dan A. Black & Frank A. Scott, 2004. "Is There Job Lock? Evidence from the Pre-HIPAA Era," Southern Economic Journal, Southern Economic Association, vol. 70(4), pages 953-976, April.
- Johnny Ducking & Peter A. Groothuis & James Richard Hill, 2013.
"Exit Discrimination in the NFL: A Duration Analysis of Career Length,"
13-10, Department of Economics, Appalachian State University.
- Peter A. Groothuis & J. Richard Hill, 2004. "Exit Discrimination in the NBA: A Duration Analysis of Career Length," Economic Inquiry, Western Economic Association International, vol. 42(2), pages 341-349, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (O. Ashton Morgan).
If references are entirely missing, you can add them using this form.