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The age-period cohort problem: set identification and point identification

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  • Martin Browning
  • Ian Crawford
  • Marike Knoef

Abstract

"Only entropy comes easily" - Anton ChekhovVarious methods have been used to overcome the point identification problem inherent in the linear age-period-cohort model. This paper presents a set-identification result for the model and then considers the use of the maximum-entropy principle as a vehicle for achieving point identification. We present two substantive applications (US female mortality data and UK female labor force participation) and compare the results from our approach to some of the solutions in the literature.

Suggested Citation

  • Martin Browning & Ian Crawford & Marike Knoef, 2012. "The age-period cohort problem: set identification and point identification," CeMMAP working papers 02/12, Institute for Fiscal Studies.
    • Handle: RePEc:azt:cemmap:02/12
    DOI: 10.1920/wp.cem.2012.0212
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    Cited by:

    1. Andreas Fagereng & Charles Gottlieb & Luigi Guiso, 2017. "Asset Market Participation and Portfolio Choice over the Life-Cycle," Journal of Finance, American Finance Association, vol. 72(2), pages 705-750, April.
    2. Tunalı, İnsan & Kırdar, Murat G. & Dayıoğlu, Meltem, 2021. "Down and up the “U” – A synthetic cohort (panel) analysis of female labor force participation in Turkey, 1988–2013," World Development, Elsevier, vol. 146(C).
    3. Moundir Lassassi & Aysit Tansel, 2020. "Female labor force participation in five selected MENA countries: An age-period-cohort analysis," Koç University-TUSIAD Economic Research Forum Working Papers 2018, Koc University-TUSIAD Economic Research Forum.
    4. Gensowski, Miriam & Gørtz, Mette & Schurer, Stefanie, 2021. "Inequality in personality over the life cycle," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 46-77.
    5. Sunde, Uwe & Dohmen, Thomas, 2016. "Aging and preferences," The Journal of the Economics of Ageing, Elsevier, vol. 7(C), pages 64-68.
    6. Chłoń-Domińczak, Agnieszka & Strzelecki, Paweł & Łątkowski, Wojciech, 2020. "Pension reforms or consequences of the economic crisis? Measuring the changes of pension incomes in selected EU countries using APC approach," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    7. Rulof Burger & Servaas Berg & Dieter Fintel, 2015. "The Unintended Consequences of Education Policies on South African Participation and Unemployment," South African Journal of Economics, Economic Society of South Africa, vol. 83(1), pages 74-100, March.
    8. Fagereng, Andreas & Halvorsen, Elin, 2017. "Imputing consumption from Norwegian income and wealth registry data," Journal of Economic and Social Measurement, IOS Press, issue 1, pages 67-100.
    9. Paweł A. Strzelecki, 2019. "Health, disability and labor force participation trends in Poland," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 31-53.
    10. Rulof P Burger & Ronelle Burger & Laura Rossouw, 2012. "The fertility transition in South Africa: A retrospective panel data analysis," Development Southern Africa, Taylor & Francis Journals, vol. 29(5), pages 738-755, December.
    11. Lassassi, Moundir & Tansel, Aysit, 2020. "Female Labor Force Participation in Five Selected MENA Countries: An Age-Period-Cohort Analysis (Algeria, Egypt, Jordan, Palestine and Tunisia)," GLO Discussion Paper Series 693, Global Labor Organization (GLO).
    12. Claire Crawford & Lorraine Dearden & Ellen Greaves, 2013. "Identifying the drivers of month of birth differences in educational attainment," DoQSS Working Papers 13-07, Quantitative Social Science - UCL Social Research Institute, University College London.
    13. Andreas Tischbirek, 2019. "Long‐term government debt and household portfolio composition," Quantitative Economics, Econometric Society, vol. 10(3), pages 1109-1151, July.
    14. Kadija Charni, 2016. "Is it Better to Work When We Are Older? An Empirical Comparison Between France and Great Britain," AMSE Working Papers 1640, Aix-Marseille School of Economics, France.
    15. Wouter Nientker & Rob Alessie, 2019. "Female Labor Market Participation Across Cohorts: Evidence from the Netherlands," De Economist, Springer, vol. 167(4), pages 407-433, December.
    16. Insan Tunali & Murat Güray Kirdar & Meltem Dayioglu, 2019. "Female Labor Force Participation In Turkey: A Synthetic Cohort (Panel) Analysis, 1988-2013," Working Papers 1378, Economic Research Forum, revised 20 Dec 2019.
    17. Kadija Charni & Stephen Bazen, 2017. "Do earnings really decline for older workers?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(1), pages 4-24, April.
    18. Bonsang, Eric & Dohmen, Thomas, 2015. "Risk attitude and cognitive aging," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 112-126.
    19. Lopez, Luis A. & Yoshida, Jiro, 2022. "Estimating housing rent depreciation for inflation adjustments," Regional Science and Urban Economics, Elsevier, vol. 95(C).
    20. Hina Amber & Bezawit Beyene Chichaibelu, 2023. "Patterns and Causes of Female Labor Force Participation: An Age–Period–Cohort Analysis for Pakistan," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(2), pages 1-31, April.
    21. Abigail Marie Rapa, "undated". "A cohort approach to project the labour participation rate in Malta," CBM Policy Papers PP/04/2019, Central Bank of Malta.
    22. Qiang Fu & Kenneth C. Land & Vicki L. Lamb, 2016. "Violent Physical Bullying Victimization at School: Has There Been a Recent Increase in Exposure or Intensity? An Age-Period-Cohort Analysis in the United States, 1991 to 2012," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 9(2), pages 485-513, June.
    23. Beatty, Timothy K.M. & Lin, Biing-Hwan & Smith, Travis A., 2013. "The Effects of Age and Birth Cohort on Dietary Quality in the United States," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151426, Agricultural and Applied Economics Association.

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