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Cross-Country Income Mobility Comparisons Under Panel Attrition: The Relevance Of Weighting Schemes

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Author Info
Luis Ayala (Instituto de Estudios Fiscales and Universidad Rey Juan Carlos)
Carolina Navarro (Universidad Nacional de Educación a Distancia)
Mercedes Sastre (Instituto de Estudios Fiscales and Universidad Complutense)

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Abstract

. This paper aims to present an assessment of the effects of panel attrition on income mobility comparisons for some EU-countries by using the European Community Household Panel (ECHP). There are different possibilities of correcting the attrition problem by means of alternative longitudinal weighting schemes. The sensitivity of mobility estimates to these attrition correction procedures is tested in the paper. Our results show that ECHP attrition is characterised by a certain degree of selectivity but only affecting some variables and countries. Different probability models corroborate the existence of a certain non-random attrition. The model chosen to construct the longitudinal weights to correct attrition offers up rather different results than those obtained when Eurostat’s longitudinal weights are used. Although attrition does not seem to have a great effect on aggregated mobility indicators, it does have a decisive effect on decomposition exercises. Finally, the tests conducted on income mobility indicators reveal a certain sensitivity to the weighting system used.

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Paper provided by Instituto de Estudios Fiscales in its series Working Papers with number 19-06 Classification-JEL : D31, D63, J60..

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Handle: RePEc:hpe:wpaper:y:2006:i:19

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Keywords: Income mobility; attrition; European Community Household Panel.;

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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.:
  1. Carlos Gradín (a) & Olga Cantó & Coral del Río, . "Inequality, Poverty And Mobility: Choosing Income Or Consumption As Welfare Indicators," Working Papers 18-04 Classification-JEL , Instituto de Estudios Fiscales. [Downloadable!]
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  2. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90. [Downloadable!] (restricted)
  3. Ulrich Rendtel ; Felix Büchel, 1994. "Tests for Non-ignorable Panel Attrition and Their Application on Wage Estimates from the German Socio-Economic Panel (GSOEP)," Discussion Papers of DIW Berlin 89, DIW Berlin, German Institute for Economic Research.
  4. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December. [Downloadable!] (restricted)
  5. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-24, September. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Luis Ayala & Mercedes Sastre, 2008. "The structure of income mobility: empirical evidence from five UE countries," Empirical Economics, Springer, vol. 35(3), pages 451-473, November. [Downloadable!] (restricted)
  2. Michael Fertig & Stefanie Schurer, 2007. "Labour Market Outcomes of Immigrants in Germany – The Importance of Heterogeneity and Attrition Bias," Ruhr Economic Papers 0020, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
  3. Michael Fertig & Stefanie Schurer, 2007. "Earnings Assimilation of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," SOEPpapers 30, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
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