IDEAS home Printed from https://ideas.repec.org/p/irn/wpaper/17-04.html
   My bibliography  Save this paper

Correcting Measurement Errors in Transition Models Based on Retrospective Panel Data

Author

Listed:
  • Shaimaa Yassin
  • Francois Langot

Abstract

We propose in this paper a dynamic n-state transition model to correct for measurement error, that could arise for example from recall and/or design bias, in retrospective panels. Our model allows the correction of measurement errors, when very little auxiliary information is available, over a long period of time taking into consideration the conjuncture fluctuations. The technique suggested shows that it is sufficient to have population moments (for at least one point in time) to correct over- or under-reporting biases. Using a Simulated Method of Moments, one can estimate a transition- and time-specific correction matrix for the labor market flows in a biased retrospective panel. Using retrospective and contemporaneous data from Egypt, we estimate the model and show the significance and robustness of our correction. We show through a reform evaluation that neglecting measurement error in the data would have produced significantly different and misleading results.

Suggested Citation

  • Shaimaa Yassin & Francois Langot, 2017. "Correcting Measurement Errors in Transition Models Based on Retrospective Panel Data," IRENE Working Papers 17-04, IRENE Institute of Economic Research.
    • Handle: RePEc:irn:wpaper:17-04
    as

    Download full text from publisher

    File URL: https://www5.unine.ch/RePEc/ftp/irn/pdfs/WP17-04.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Duffie, Darrell & Singleton, Kenneth J, 1993. "Simulated Moments Estimation of Markov Models of Asset Prices," Econometrica, Econometric Society, vol. 61(4), pages 929-952, July.
    2. Thierry Magnac & Michael Visser, 1999. "Transition Models With Measurement Errors," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 466-474, August.
    3. Ulrich Rendtel & Rolf Langeheine & Roland Berntsen, 1998. "The Estimation Of Poverty Dynamics Using Different Measurements Of Household Income," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(1), pages 81-98, March.
    4. François Langot & Shaimaa Yassin, 2015. "Reforming Employment Protection in Egypt: An Evaluation Based on Transition Models with Measurement Errors," Working Papers 918, Economic Research Forum, revised Jun 2015.
    5. Ragui Assaad & Caroline Krafft & Shaimaa Yassin, 2018. "Comparing retrospective and panel data collection methods to assess labor market dynamics," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-34, December.
    6. Poterba, James M & Summers, Lawrence H, 1986. "Reporting Errors and Labor Market Dynamics," Econometrica, Econometric Society, vol. 54(6), pages 1319-1338, November.
    7. Robert Shimer, 2012. "Reassessing the Ins and Outs of Unemployment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(2), pages 127-148, April.
    8. Ragui Assaad & Caroline Krafft, 2013. "The Egypt labor market panel survey: introducing the 2012 round," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-30, December.
    9. Shaimaa Yassin, 2014. "Job Accession, Separation and Mobility in the Egyptian Labor Market Over the Past Decade," Working Papers 881, Economic Research Forum, revised Nov 2014.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ragui Assaad & Caroline Krafft & Shaimaa Yassin, 2020. "Job creation or labor absorption? An analysis of private sector job growth in Egypt," Middle East Development Journal, Taylor & Francis Journals, vol. 12(2), pages 177-207, July.
    2. Ragui Assaad & Caroline Krafft & Shaimaa Yassin, 2018. "Comparing retrospective and panel data collection methods to assess labor market dynamics," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-34, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shaimaa Yassin, 2016. "Constructing Labor Market Transitions Recall Weights in Retrospective Data: An Application to Egypt and Jordan," IRENE Working Papers 16-07, IRENE Institute of Economic Research.
    2. Ragui Assaad & Caroline Krafft & Shaimaa Yassin, 2018. "Comparing retrospective and panel data collection methods to assess labor market dynamics," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-34, December.
    3. Caroline Krafft, 2020. "Why is fertility on the rise in Egypt? The role of women’s employment opportunities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(4), pages 1173-1218, October.
    4. François Langot & Shaimaa Yassin, 2015. "Reforming Employment Protection in Egypt: An Evaluation Based on Transition Models with Measurement Errors," Working Papers 918, Economic Research Forum, revised Jun 2015.
    5. Carlos Carrillo‐Tudela & Ludo Visschers, 2023. "Unemployment and Endogenous Reallocation Over the Business Cycle," Econometrica, Econometric Society, vol. 91(3), pages 1119-1153, May.
    6. Sun, Jiandong & Feng, Shuaizhang & Hu, Yingyao, 2021. "Misclassification errors in labor force statuses and the early identification of economic recessions," Journal of Asian Economics, Elsevier, vol. 75(C).
    7. Ragui Assaad & Caroline Krafft & Colette Salemi, 2023. "Socioeconomic Status and the Changing Nature of School-to-Work Transitions in Egypt, Jordan, and Tunisia," ILR Review, Cornell University, ILR School, vol. 76(4), pages 697-723, August.
    8. Caroline Krafft & Ragui Assaad, 2020. "Employment’s Role in Enabling and Constraining Marriage in the Middle East and North Africa," Demography, Springer;Population Association of America (PAA), vol. 57(6), pages 2297-2325, December.
    9. Hairault, Jean-Olivier & Le Barbanchon, Thomas & Sopraseuth, Thepthida, 2015. "The cyclicality of the separation and job finding rates in France," European Economic Review, Elsevier, vol. 76(C), pages 60-84.
    10. Ragui Assaad & Caroline Krafft, 2023. "Labour market dynamics and youth unemployment in the Middle East and North Africa: Evidence from Egypt, Jordan, and Tunisia," LABOUR, CEIS, vol. 37(4), pages 519-553, December.
    11. Shibata, Ippei, 2022. "Reassessing classification errors in the analysis of labor market dynamics," Labour Economics, Elsevier, vol. 78(C).
    12. Elsby, Michael W.L. & Hobijn, Bart & Şahin, Ayşegül, 2015. "On the importance of the participation margin for labor market fluctuations," Journal of Monetary Economics, Elsevier, vol. 72(C), pages 64-82.
    13. Borowczyk-Martins, Daniel & Lalé, Etienne, 2020. "The ins and outs of involuntary part-time employment," Labour Economics, Elsevier, vol. 67(C).
    14. Philip Jung & Moritz Kuhn, 2019. "Earnings Losses and Labor Mobility Over the Life Cycle," Journal of the European Economic Association, European Economic Association, vol. 17(3), pages 678-724.
    15. Das, Tirthatanmoy & Polachek, Solomon W., 2017. "Estimating labor force joiners and leavers using a heterogeneity augmented two-tier stochastic frontier," Journal of Econometrics, Elsevier, vol. 199(2), pages 156-172.
    16. Miyamoto, Hiroaki, 2011. "Cyclical behavior of unemployment and job vacancies in Japan," Japan and the World Economy, Elsevier, vol. 23(3), pages 214-225.
    17. Yassin, Shaimaa & Langot, François, 2018. "Informality, public employment and employment protection in developing countries," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 326-348.
    18. Valladares-Esteban, Arnau & Choi, Sekyu, 2016. "The marriage unemployment gap," Discussion Paper Series In Economics And Econometrics 1509, Economics Division, School of Social Sciences, University of Southampton.
    19. Hie Joo Ahn & James Hamilton, 2022. "Measuring Labor-Force Participation and the Incidence and Duration of Unemployment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 44, pages 1-32, April.
    20. Olena Kostyshyna & Etienne Lalé, 2022. "On the evolution of multiple jobholding in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(2), pages 1095-1134, May.

    More about this item

    Keywords

    Panel Data; Retrospective Recall; Measurement Error; Labor Markets; Transition Models.;
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:irn:wpaper:17-04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Siwar Khelifa (email available below). General contact details of provider: https://edirc.repec.org/data/irenech.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.