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Left-Censoring in Duration Data: Theory and Applications

Author

Listed:
  • Anna Christina D'Addio
  • Michael Rosholm

    () (Department of Economics, University of Aarhus, Denmark)

Abstract

In this paper, we discuss how to best exploit the information contained in spells that are in progress when an observation period begins, that is, left-censored and left-truncated duration data. We provide a survey of censoring and truncation mechanisms in event history models. We describe some approaches that have been suggested in the literature to deal with left-censoring. Our contribution is the description of ways to use additional information to obtain more efficient parameter estimates using the left-censored informations, and particularly, the derivation of the associated likelihood expressions. In order to use the information efficiently, we often resort to the stationarity assumption. Hence, we provide a Hausman test for this assumption. The second part of the paper briefly presents some empirical examples which demonstrates the efficiency gains associated with the use of the information contained in the left-censored observations. In particular, we show how the use of some additional pieces of information allows us to obtain more efficient estimates of the parameters of interest. In doing this, we use the information reported in the waves 1990-1992 of the French Labour Force Surveys on young French individuals.

Suggested Citation

  • Anna Christina D'Addio & Michael Rosholm, "undated". "Left-Censoring in Duration Data: Theory and Applications," Economics Working Papers 2002-5, Department of Economics and Business Economics, Aarhus University.
  • Handle: RePEc:aah:aarhec:2002-5
    as

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    File URL: ftp://ftp.econ.au.dk/afn/wp/02/wp02_5.pdf
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    Citations

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    Cited by:

    1. Giovanni S.F. Bruno & Floro E. Caroleo & Orietta Dessy, 2013. "Stepping stones versus dead end jobs: exits from temporary contracts in Italy after the 2003 reform," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 121(1), pages 31-62.
    2. Anna Christina D'Addio & Bo E. Honoré, "undated". "Duration Dependence and Timevarying Variables in Discrete Time Duration Models," Economics Working Papers 2002-13, Department of Economics and Business Economics, Aarhus University.
    3. Jakobsen, Vibeke & Rosholm, Michael, 2003. "Dropping out of School? A Competing Risks Analysis of Young Immigrants’ Progress in the Educational System," IZA Discussion Papers 918, Institute for the Study of Labor (IZA).
    4. Anne C. Gielen & Jan C. Ours, 2014. "Unhappiness and Job Finding," Economica, London School of Economics and Political Science, vol. 81(323), pages 544-565, July.
    5. Paul Brenton & Christian Saborowski & Erik von Uexkull, 2010. "What Explains the Low Survival Rate of Developing Country Export Flows?," World Bank Economic Review, World Bank Group, vol. 24(3), pages 474-499, December.
    6. Adriaan Kalwij, 2014. "An empirical analysis of the importance of controlling for unobserved heterogeneity when estimating the income-mortality gradient," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 31(30), pages 913-940, October.
    7. Roberto Impicciatore & Francesco Billari, 2011. "MAPLES: A general method for the estimation of age profiles from standard demographic surveys (with an application to fertility)," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 24(29), pages 719-748, May.
    8. Georges Dionne & Benoit Dostie, 2007. "Estimating the effect of a change in insurance pricing regime on accidents with endogenous mobility," Cahiers de recherche 07-11, HEC Montréal, Institut d'économie appliquée.
    9. Doiron, Denise & Gørgens, Tue, 2008. "State dependence in youth labor market experiences, and the evaluation of policy interventions," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 81-97, July.
    10. Sunder, Marco, 2005. "Toward generation XL: Anthropometrics of longevity in late 20th-century United States," Economics & Human Biology, Elsevier, vol. 3(2), pages 271-295, July.
    11. Pişkin, Erhan, 2017. "Türkiye İhracatının Ölüm-Kalım Meselesi
      [The Matter of Survival for Turkish Exports]
      ," MPRA Paper 81459, University Library of Munich, Germany.
    12. Ana Flavia Machado & Rafael Perez Ribas, 2010. "Do Changes in the Labour Market Take Families Out of Poverty? Determinants of Exiting Poverty in Brazilian Metropolitan Regions," Journal of Development Studies, Taylor & Francis Journals, vol. 46(9), pages 1503-1522.
    13. Niedergesäss, Markus, 2012. "Duration dependence, lagged duration dependence, and occurrence dependence in individual employment histories," University of Tuebingen Working Papers in Economics and Finance 26, University of Tuebingen, Faculty of Economics and Social Sciences.

    More about this item

    Keywords

    left-censoring; left-truncation; conditional likelihood; hazard rate; stationarity;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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