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The Analysis of the Impact of Panel Attrition on Estimation of Regular-Irregular Worker Wage Gap in the KLIPS

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  • Daehyun. Kim

Abstract

The aim of this paper is analyzing the effect of panel attrition on estimation of regular-irregular worker wage gap using KLIPS (Korean Labor and Income Panel Study). Using two wave sub-panels of KLIPS, we first analyze the characteristics of attritions. We find that the nonrandom attrition has occurred and it causes the underestimation of regular-irregular worker wage gap. Second, we decompose the attrition bias into ‘ability bias’ and ‘distortion bias’. And third we develop the estimation strategies to reduce the bias. We have found that the bias is not negligible although it has been attenuated by change of job of workers.

Suggested Citation

  • Daehyun. Kim, 2010. "The Analysis of the Impact of Panel Attrition on Estimation of Regular-Irregular Worker Wage Gap in the KLIPS," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 45-56.
    • Handle: RePEc:ers:journl:v:xiii:y:2010:i:4:p:45-56
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    1. John Fitzgerald & Peter Gottschalk & Robert Moffitt, 1998. "An Analysis of Sample Attrition in Panel Data: The Michigan Panel Study of Income Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 251-299.
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    3. Lee A. Lillard & Constantijn W. A. Panis, 1998. "Panel Attrition from the Panel Study of Income Dynamics: Household Income, Marital Status, and Mortality," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 437-457.
    4. Hausman, Jerry A & Wise, David A, 1979. "Attrition Bias in Experimental and Panel Data: The Gary Income Maintenance Experiment," Econometrica, Econometric Society, vol. 47(2), pages 455-473, March.
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    More about this item

    Keywords

    Panel Attrition; Sample Selection; Wage Gap; IPW Method;
    All these keywords.

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General

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