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

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  • 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)

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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  1. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
  2. Carlos Gradín & Olga Cantó & Coral del Río, 2008. "Inequality, poverty and mobility: Choosing income or consumption as welfare indicators," Investigaciones Economicas, Fundación SEPI, vol. 32(2), pages 169-200, May.
  3. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
  4. Adam Davey & Michael J. Shanahan & Joseph L. Schafer, 2001. "Correcting for Selective Nonresponse in the National Longitudinal Survey of Youth Using Multiple Imputation," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 500-519.
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  6. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-24, September.
  7. Charles J. Romeo, 2001. "Controlling for Seam Problems in Duration Model Estimates: With Application to the Current Population Survey and the Computer Aided Telephone Interview/Computer Aided Personal Interview Overlap Survey," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 467-499.
  8. 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.
  9. John Fitzgerald & Peter Gottschalk & Robert Moffitt, 1998. "An Analysis of Sample Attrition in Panel Data: The Michigan Panel Study of income Dynamics," Economics Working Paper Archive 379, The Johns Hopkins University,Department of Economics.
  10. José María Arranz & Carlos García-Serrano, . "¿Qué Ha Sucedido Con La Estabilidad Del Empleo En España?. Un Análisis Desagregado Con Datos De La Epa: 1987-2003(*)," Working Papers 4-04 Classification-JEL :, Instituto de Estudios Fiscales.
  11. Charles R. Pierret, 2001. "Event History Data and Survey Recall: An Analysis of the National Longitudinal Survey of Youth 1979 Recall Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 439-466.
  12. Sean Becketti & William Gould & Lee Lillard & Finis Welch, 1985. "The Panel Study of Income Dynamics After Fourteen Years: An Evaluation," UCLA Economics Working Papers 361, UCLA Department of Economics.
  13. Miguel Ángel López García, . "La Vivienda Y La Reforma Fiscal De 1998: Un Ejercicio De Simulación(*)," Working Papers 7-04 Classification-JEL :, Instituto de Estudios Fiscales.
  14. John Fitzgerald & Peter Gottschalk & Robert Moffitt, 1998. "An Analysis of the Impact of Sample Attrition on the Second Generation of Respondents in the Michigan Panel Study of Income Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 300-344.
  15. Fidel Picos Sánchez, . "Modelo Dual De Irpf Y Equidad: Un Nuevo Enfoque Teórico Y Su Aplicación Al Caso Español," Working Papers 8-04 Classification-JEL :, Instituto de Estudios Fiscales.
  16. Daniel H. Hill & Robert J. Willis, 2001. "Reducing Panel Attrition: A Search for Effective Policy Instruments," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 416-438.
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Cited by:
  1. SOLOGON Denisa & O?DONOGHUE Cathal, 2012. "Shaping earnings instability: labour market policy and institutional factors," CEPS/INSTEAD Working Paper Series 2012-06, CEPS/INSTEAD.
  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.
  3. Michael Fertig & Stefanie Schurer, 2007. "Earnings Assimilation of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," SOEPpapers on Multidisciplinary Panel Data Research 30, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. Ayala, Luis & Navarro, Carolina, 2007. "The dynamics of housing deprivation," Journal of Housing Economics, Elsevier, vol. 16(1), pages 72-97, March.
  5. Sara Ayllón, 2013. "Understanding poverty persistence in Spain," SERIEs, Spanish Economic Association, vol. 4(2), pages 201-233, June.
  6. 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.
  7. SOLOGON Denisa & O?DONOGHUE Cathal, 2010. "Earnings dynamics and inequality in the EU, 1994-2001," CEPS/INSTEAD Working Paper Series 2010-34, CEPS/INSTEAD.

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