IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v30y1998i12p2195-2210.html
   My bibliography  Save this article

Testing for Sample-Selection Bias Due to Location Effects in Work-History Data Collected Retrospectively from a Geographically Based Sample

Author

Listed:
  • R Crouchley

    (Centre for Applied Statistics, Fylde College, University of Lancaster, Lancaster LA1 4YF, England)

Abstract

A three-state competing-risk labour-market model with a submodel for the state on entry into the labour market and a control for individual-level heterogeneity is constructed. A test for sample-selection bias due to location effects in the labour-market model is formulated and applied to the retrospective work-history data from the Social Class and Economic Life Initiative (SCELI). The test suggests that location and labour-market behaviour are interdependent outcomes. As the SCELI has sampled data from a very restricted subset of all possible locations in Britain the model loses external validity, that is, the results cannot be generalised to individuals who live outside the selected areas at the sample date. The model also loses internal validity, because selection on location will have induced a correlation between the random components and many of the covariates in the model, implying that the estimated parameters are misleading indicators of the true covariate effects. These conclusions must therefore raise questions about the validity of any substantive research related to labour-market outcomes which uses the SCELI data.

Suggested Citation

  • R Crouchley, 1998. "Testing for Sample-Selection Bias Due to Location Effects in Work-History Data Collected Retrospectively from a Geographically Based Sample," Environment and Planning A, , vol. 30(12), pages 2195-2210, December.
    • Handle: RePEc:sae:envira:v:30:y:1998:i:12:p:2195-2210
    DOI: 10.1068/a302195
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a302195
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a302195?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bloom, David E. & Killingsworth, Mark R., 1985. "Correcting for truncation bias caused by a latent truncation variable," Journal of Econometrics, Elsevier, vol. 27(1), pages 131-135, January.
    2. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    3. 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.
    4. Elias, Peter, 1994. "Job-Related Training, Trade Union Membership, and Labour Mobility: A Longitudinal Study," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 563-578, October.
    Full references (including those not matched with items on IDEAS)

    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. Hausman, Jerry A. & Woutersen, Tiemen, 2014. "Estimating a semi-parametric duration model without specifying heterogeneity," Journal of Econometrics, Elsevier, vol. 178(P1), pages 114-131.
    2. Alberto Palloni & Jason Thomas, 2013. "Estimation of Covariate Effects With Current Status Data and Differential Mortality," Demography, Springer;Population Association of America (PAA), vol. 50(2), pages 521-544, April.
    3. Sasaki, Yuya, 2015. "Heterogeneity and selection in dynamic panel data," Journal of Econometrics, Elsevier, vol. 188(1), pages 236-249.
    4. Patrick Arni & Rafael Lalive & Jan C. Van Ours, 2013. "How Effective Are Unemployment Benefit Sanctions? Looking Beyond Unemployment Exit," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(7), pages 1153-1178, November.
    5. Kemptner, Daniel & Tolan, Songül, 2018. "The role of time preferences in educational decision making," Economics of Education Review, Elsevier, vol. 67(C), pages 25-39.
    6. Christelis, Dimitris & Dobrescu, Loretti I. & Motta, Alberto, 2020. "Early life conditions and financial risk-taking in older age," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    7. Michelle Sheran Sylvester, 2007. "The Career and Family Choices of Women: A Dynamic Analysis of Labor Force Participation, Schooling, Marriage and Fertility Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 367-399, July.
    8. Insoo Cho & Peter F. Orazem, 2021. "How endogenous risk preferences and sample selection affect analysis of firm survival," Small Business Economics, Springer, vol. 56(4), pages 1309-1332, April.
    9. Walter Beckert, 2015. "Choice in the Presence of Experts," Birkbeck Working Papers in Economics and Finance 1503, Birkbeck, Department of Economics, Mathematics & Statistics.
    10. Ali Palali & Jan C. Van ours, 2017. "Love Conquers all but Nicotine: Spousal Peer Effects on the Decision to Quit Smoking," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 1710-1727, December.
    11. Steven M. Lewis & Adrian E. Raftery, 1999. "Bayesian Analysis of Event History Models with Unobserved Heterogeneity via Markov Chain Monte Carlo," Sociological Methods & Research, , vol. 28(1), pages 35-60, August.
    12. D'Addio, Anna Cristina & De Greef, Isabelle & Rosholm, Michael, 2002. "Assessing Unemployment Traps in Belgium Using Panel Data Sample Selection Models," IZA Discussion Papers 669, Institute of Labor Economics (IZA).
    13. Parent, Daniel, 1999. "Wages and Mobility: The Impact of Employer-Provided Training," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 298-317, April.
    14. Steven T Berry & Giovanni Compiani, 2023. "An Instrumental Variable Approach to Dynamic Models," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(4), pages 1724-1758.
    15. Francesco Devicienti & Valentina Gualtieri & Mariacristina Rossi, 2014. "The Persistence Of Income Poverty And Lifestyle Deprivation: Evidence From Italy," Bulletin of Economic Research, Wiley Blackwell, vol. 66(3), pages 246-278, July.
    16. Elena Casquel & Antoni Cunyat, "undated". "The Welfare Cost of Business Cycles in an Economy with Nonclearing Markets," Working Papers 2005-19, FEDEA.
    17. Brigitte Dormont & Denis Fougère & Ana Prieto, 2001. "L'effet de l'allocation unique dégressive sur la reprise d'emploi," Économie et Statistique, Programme National Persée, vol. 343(1), pages 3-28.
    18. Cockx, Bart & Robin, Stéphane R. & Goebel, Christian, 2006. "Income Support Policies for Part-Time Workers: A Stepping-Stone to Regular Jobs? An Application to Young Long-Term Unemployed Women in Belgium," IZA Discussion Papers 2432, Institute of Labor Economics (IZA).
    19. Hoffman, Mitchell & Burks, Stephen V., 2017. "Worker Overconfidence: Field Evidence and Implications for Employee Turnover and Returns from Training," IZA Discussion Papers 10794, Institute of Labor Economics (IZA).
    20. Pan, Wei & Louis, Thomas A., 1999. "Two semi-parametric empirical Bayes estimators," Computational Statistics & Data Analysis, Elsevier, vol. 30(2), pages 185-196, April.

    More about this item

    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:sae:envira:v:30:y:1998:i:12:p:2195-2210. 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: SAGE Publications (email available below). General contact details of provider: .

    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.