Reconsidering the analysis of longitudinal happiness data - with an application to the effect of unemployment
The paper reconsiders existing estimators for the panel data fixed effects ordered logit model, including one that has not been used in econometric studies before, and studies the small sample properties of these estimators in a series of Monte Carlo simulations. There are two main findings. First, we show that some of the estimators used in the literature are inconsistent. Second, the new estimator seems to be more immune to small sample bias than other consistent estimators and is easy to implement. The empirical relevance is illustrated in an application to the effect of unemployment on happiness. Choosing the right estimator avoids a bias of up to 30 percent in key parameters.
|Date of creation:||Jan 2011|
|Date of revision:||Jun 2011|
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- Ada Ferrer-i-Carbonell & Paul Frijters, 2004.
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- Das, J.W.M. & van Soest, A.H.O., 1996. "A panel data model for subjective information on household income growth," Other publications TiSEM a6683363-b5a6-4fe7-b062-7, Tilburg University, School of Economics and Management.
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"Job Satisfaction and Family Happiness: The Part-time Work Puzzle,"
Department of Economics - Working Papers Series
1000, The University of Melbourne.
- AlisonL. Booth & JanC. vanOurs, 2008. "Job Satisfaction and Family Happiness: The Part-Time Work Puzzle," Economic Journal, Royal Economic Society, vol. 118(526), pages F77-F99, 02.
- Booth, Alison L. & van Ours, Jan C., 2007. "Job Satisfaction and Family Happiness: The Part-time Work Puzzle," IZA Discussion Papers 3020, Institute for the Study of Labor (IZA).
- Booth, Alison L & van Ours, Jan C, 2007. "Job Satisfaction and Family Happiness: The Part-time Work Puzzle," CEPR Discussion Papers 6471, C.E.P.R. Discussion Papers.
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- Anna Cristina D'Addio & Tor Eriksson & Paul Frijters, 2007.
"An analysis of the determinants of job satisfaction when individuals' baseline satisfaction levels may differ,"
Taylor & Francis Journals, vol. 39(19), pages 2413-2423.
- Anna Cristina D’Addio & Tor Eriksson & Paul Frijters, 2003. "An Analysis of the Determinants of Job Satisfaction when Individuals’ Baseline Satisfaction Levels May Differ," CAM Working Papers 2003-16, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
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