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Parametric and Semiparametric Estimation in Models with Misclassified Categorical Dependent Variables

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Author Info

  • Dustmann, Christian

    ()
    (University College London)

  • van Soest, Arthur

    ()
    (Tilburg University)

Abstract

We consider both a parametric and a semiparametric method to account for classification errors on the dependent variable in an ordered response model. The methods are applied to the analysis of self-reported speaking fluency of male immigrants in Germany. We find that a parametric model which explicitly allows for misclassification performs better than a standard ordered probit model and than a model with random thresholds. We find some substantial differences in parameter estimates and predictions of the different models.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 218.

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Length: 45 pages
Date of creation: Nov 2000
Date of revision:
Publication status: published in: Journal of Business and Economic Statistics, 2004, 22 (3), 312-321
Handle: RePEc:iza:izadps:dp218

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Related research

Keywords: misclassification error; speaking fluency; Immigrants;

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References

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  1. Das, Marcel & van Soest, Arthur, 1997. "Expected and realized income changes: Evidence from the Dutch socio-economic panel," Journal of Economic Behavior & Organization, Elsevier, vol. 32(1), pages 137-154, January.
  2. Dustmann, Christian, 1994. "Speaking Fluency, Writing Fluency and Earnings of Migrants," CEPR Discussion Papers 905, C.E.P.R. Discussion Papers.
  3. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-88, April.
  4. Han, Aaron K., 1987. "Non-parametric analysis of a generalized regression model : The maximum rank correlation estimator," Journal of Econometrics, Elsevier, vol. 35(2-3), pages 303-316, July.
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Cited by:
  1. Molinari, Francesca, 2005. "Partial Identification of Probability Distributions with Misclassified Data," Working Papers 05-10, Cornell University, Center for Analytic Economics.
  2. Charles Bellemare & Bertrand Melenberg & Arthur van Soest, 2002. "Semi-parametric models for satisfaction with income," CeMMAP working papers CWP12/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.

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