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Examining the Economic / Econometric Relevance of Discretizing Panel Data : An Application to the Belgian Labour Market

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  • CAHUZAC, E.

    (IRES, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium)

  • MOUCHART, M.

    (CORE and Institut de Statistique, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium)

  • VAN DER LINDEN, B.

    (National Fund for Scientic Research ( Belgium) and IRES, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium)

Abstract

The object of this paper is to explore how to use administrative data for econometric purposes when these data measure total annual duration spent in various states. A basic issue addressed in this paper is to check whether the information extracted through categorizing continuous data actually defines an economically meaningful concept of an individual position on the labour market. The main findings are first that discretization indeed leads to interpretable transitions on the labour market and second that the mobility between positions is rather low in Belgium.

Suggested Citation

  • Cahuzac, E. & Mouchart, M. & Van Der Linden, B., 1993. "Examining the Economic / Econometric Relevance of Discretizing Panel Data : An Application to the Belgian Labour Market," LIDAM Discussion Papers CORE 1993018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:1993018
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