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Sampling errors and the substitution between white-collar and blue-collar workers

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  • W. H. J. Hassink
  • R. D. Huigen
  • Z. Zeelenberg

Abstract

The consequences of sampling errors in estimating a simple labour demand model, using panel data of firms is discussed. It is found that the sampling errors of the variables at the firm-level due to the sampling process at the employee-level, have a substantial influence on the estimates of the elasticity of substitution between white-collar and blue-collar workers. It is shown that because of the large noise-to-signal ratio of the explanatory variable no evidence of substitution can be found.

Suggested Citation

  • W. H. J. Hassink & R. D. Huigen & Z. Zeelenberg, 1994. "Sampling errors and the substitution between white-collar and blue-collar workers," Applied Economics Letters, Taylor & Francis Journals, vol. 1(10), pages 164-166.
    • Handle: RePEc:taf:apeclt:v:1:y:1994:i:10:p:164-166
    DOI: 10.1080/135048594357925
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