Estimation and Simulation of Earnings in IT-SILC
This paper describes income distribution among workers in Italy using both the cross-sectional and panel component of IT-SILC. We highlight advantages and drawbacks of different econometric approaches, comparing standard OLS estimates with those obtained from Random Effects and Poisson Maximum Likelihood and assessing whether the results are sensitive to the different specification. Finally, we present the procedure in use in simulating future earnings in CAPP_DYN, the dynamic population-based microsimulation model of the CAPP
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