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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 / Universidad Rey Juan Carlos)

  • Carolina Navarro

    (Universidad Nacional de Educación a Distancia)

  • Mercedes Sastre

    (Instituto de Estudios Fiscales / 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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File URL: http://www.ecineq.org/milano/WP/ECINEQ2006-47.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 47.

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Length: 43 pages
Date of creation: 2006
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Handle: RePEc:inq:inqwps:ecineq2006-47

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

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  8. 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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Cited by:
  1. Fertig, Michael & Schurer, Stefanie, 2007. "Labour Market Outcomes of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," IZA Discussion Papers 2915, Institute for the Study of Labor (IZA).
  2. 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.
  3. Ayala, Luis & Navarro, Carolina, 2007. "The dynamics of housing deprivation," Journal of Housing Economics, Elsevier, vol. 16(1), pages 72-97, March.
  4. SOLOGON Denisa & O?DONOGHUE Cathal, 2012. "Shaping earnings instability: labour market policy and institutional factors," CEPS/INSTEAD Working Paper Series 2012-06, CEPS/INSTEAD.
  5. SOLOGON Denisa & O?DONOGHUE Cathal, 2010. "Earnings dynamics and inequality in the EU, 1994-2001," CEPS/INSTEAD Working Paper Series 2010-34, CEPS/INSTEAD.
  6. Sara Ayllón, 2013. "Understanding poverty persistence in Spain," SERIEs, Spanish Economic Association, vol. 4(2), pages 201-233, June.
  7. 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).

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