Estimating an Earnings Function from Coarsened Data by an Interval Censored Regression Procedure
AbstractThis paper estimates an earnings function where the dependent variable is a mix of point and interval data using an interval regression model based on a pseudo-maximum likelihood estimation procedure. The analysis uses the 1999 OHS, and takes into account point and interval income observations, as well as design features of the survey including stratification, clustering and weights. In developing and applying the methodology, it is shown that researchers interested in analysing the determinants of income in a meaningful way need not be hampered by the presence of both point and interval observations, and can in fact account for these simultaneously using a generalised Tobit model. By incorporating survey design features into the analysis of the variance, some changes were needed to the estimation procedure and this is where the pseudo-likelihood becomes useful. However, this then affects how the coefficients of the model are interpreted, and researchers are encouraged to focus attention on the confluence of these factors.
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Bibliographic InfoPaper provided by University of Cape Town, Development Policy Research Unit in its series Working Papers with number 05091.
Length: 19 pages
Date of creation: Feb 2005
Date of revision:
Publication status: Published in Working Paper Series by the Development Policy Research Unit, February 2005, pages 1-19
South Africa: Generalised Tobit Model; Pseudo Maximum Likelihood Estimation; Complex Survey Data;
Find related papers by JEL classification:
- C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
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