Modelling low pay transition probabilities, accounting for panel attrition, non-response, and initial conditions
We model annual low pay transition probabilities taking account of three potentially endogenous selections: two sample drop-out mechanisms (panel attrition, non-employment) and â€˜initial conditionsâ€™ (base-year low pay status). This model, and variants that ignore one or more of these selection mechanisms, are fitted to data for men from the British Household Panel Survey. Tests of the ignorability of the endogenous selection mechanisms suggest that â€˜economicâ€™ selection mechanisms such as initial conditions and retention of employment are more important than the â€˜surveyâ€™ selection mechanism (attrition). However, consistent with related US research, relatively simple models provide estimates of covariate effects that differ little from the estimates from the complicated models.
|Date of creation:||01 Jun 2004|
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- Jeffrey E. Zabel, 1998. "An Analysis of Attrition in the Panel Study of Income Dynamics and the Survey of Income and Program Participation with an Application to a Model of Labor Market Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 479-506.
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- Cappellari, Lorenzo & Jenkins, Stephen P., 2002.
"Modelling low income transitions,"
ISER Working Paper Series
2002-08, Institute for Social and Economic Research.
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- Gerard J. van den Berg & Maarten Lindeboom, 1998. "Attrition in Panel Survey Data and the Estimation of Multi-State Labor Market Models," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 458-478.
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The Warwick Economics Research Paper Series (TWERPS)
495, University of Warwick, Department of Economics.
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- Mark B. Stewart, 2002. "The Inter-related Dynamics of Unemployment and Low Pay," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B2-4, International Conferences on Panel Data.
- Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
- Schrapler, Jorg-Peter, 2003. "Respondent behaviour in panel studies: a case study for income-nonresponse by means of the British Household Panel Study (BHPS)," ISER Working Paper Series 2003-08, Institute for Social and Economic Research.
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- James P. Ziliak & Thomas J. Kniesner, 1998. "The Importance of Sample Attrition in Life Cycle Labor Supply Estimation," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 507-530.
- Becketti, Sean, et al, 1988. "The Panel Study of Income Dynamics after Fourteen Years: An Evaluatio n," Journal of Labor Economics, University of Chicago Press, vol. 6(4), pages 472-492, October.
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