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Attrition in Panel Survey Data and the Estimation of Multi-State Labor Market Models

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  • Gerard J. van den Berg
  • Maarten Lindeboom

Abstract

In the analysis of labor market transitions, spells that are incomplete due to panel survey attrition are treated as spells that are subject to independent right-censoring. It is likely, however, that the unobserved characteristics affecting individual transitions on the labor market are related to those affecting the attitude toward survey participation. In that case, the transition rate estimates are inconsistent. In this paper we analyze the relation between durations spent in labor market states and the duration of panel survey participation, by explicitly modeling and estimating both stochastic processes. We use multi-state multi-spell models which allow for stochastically related unobserved determinants.

Suggested Citation

  • Gerard J. van den Berg & Maarten Lindeboom, 1998. "Attrition in Panel Survey Data and the Estimation of Multi-State Labor Market Models," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 458-478.
    • Handle: RePEc:uwp:jhriss:v:33:y:1998:i:2:p:458-478
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    Cited by:

    1. Picchio, Matteo & van Ours, Jan C., 2013. "Retaining through training even for older workers," Economics of Education Review, Elsevier, vol. 32(C), pages 29-48.
    2. Picchio, Matteo & Mussida, Chiara, 2011. "Gender wage gap: A semi-parametric approach with sample selection correction," Labour Economics, Elsevier, vol. 18(5), pages 564-578, October.
    3. Insan Tunali, 2008. "Analysis of Attrition Patterns in the Turkish Household Labor Force Survey, 2000-2002," Working Papers 393, Economic Research Forum, revised 03 Jan 2008.
    4. Marloes de Graaf-Zijl & Gerard van den Berg & Arjan Heyma, 2011. "Stepping stones for the unemployed: the effect of temporary jobs on the duration until (regular) work," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 107-139, January.
    5. Chiara Mussida & Matteo Picchio, 2014. "The gender wage gap by education in Italy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(1), pages 117-147, March.
    6. Marcel Das & Vera Toepoel & Arthur van Soest, 2011. "Nonparametric Tests of Panel Conditioning and Attrition Bias in Panel Surveys," Sociological Methods & Research, , vol. 40(1), pages 32-56, February.
    7. Hans G. Bloemen, 2016. "Private wealth and job exit at older age: a random effects model," Empirical Economics, Springer, vol. 51(2), pages 763-807, September.
    8. Chiara Mussida & Matteo Picchio, 2014. "The trend over time of the gender wage gap in Italy," Empirical Economics, Springer, vol. 46(3), pages 1081-1110, May.
    9. Matteo Picchio & Giacomo Valletta, 2018. "A welfare evaluation of the 1986 tax reform for married couples in the United States," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(3), pages 757-807, June.
    10. Shin, Jaeun & Moon, Sangho, 2006. "Fertility, relative wages, and labor market decisions: A case of female teachers," Economics of Education Review, Elsevier, vol. 25(6), pages 591-604, December.
    11. Mosthaf, Alexander, 2011. "Low-wage jobs - stepping stones or just bad signals?," IAB-Discussion Paper 201111, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    12. Dorsett, Richard & Lucchino, Paolo, 2018. "Young people's labour market transitions: The role of early experiences," Labour Economics, Elsevier, vol. 54(C), pages 29-46.
    13. Van den Berg, Gerard & Lindeboom, Maarten & Portrait, France, 2001. "An Econometric Analysis of the Mental-Health Effects of Major Events in the Life of Elderly Individuals," CEPR Discussion Papers 3091, C.E.P.R. Discussion Papers.
    14. Boudarbat, Brahim & Grenon, Lee, 2013. "Sample Attrition in the Canadian Survey of Labor and Income Dynamics," IZA Discussion Papers 7295, Institute of Labor Economics (IZA).
    15. Maarten Lindeboom & France Portrait & Gerard J. van den Berg, 2002. "An econometric analysis of the mental‐health effects of major events in the life of older individuals," Health Economics, John Wiley & Sons, Ltd., vol. 11(6), pages 505-520, September.
    16. Annette Bergemann & Bernd Fitzenberger & Stefan Speckesser, 2009. "Evaluating the dynamic employment effects of training programs in East Germany using conditional difference-in-differences," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(5), pages 797-823.
    17. Kappe, E.R. & Bijwaard, G.E., 2005. "Does work-related training reduce the discrepancy between function requirements and competencies?," Econometric Institute Research Papers EI 2005-42, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    18. Lorenzo Cappellari & Stephen P. Jenkins, 2004. "Modelling low income transitions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(5), pages 593-610.
    19. Alexander Mosthaf, 2014. "Do Scarring Effects of Low-Wage Employment and Non-Employment Differ BETWEEN Levels of Qualification?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(2), pages 154-177, May.
    20. Doreen Triebe, 2015. "The Added Worker Effect Differentiated by Gender and Partnership Status: Evidence from Involuntary Job Loss," SOEPpapers on Multidisciplinary Panel Data Research 740, DIW Berlin, The German Socio-Economic Panel (SOEP).
    21. Lorenzo Cappellari & Stephen P. Jenkins, 2004. "Modelling Low Pay Transition Probabilities, Accounting for Panel Attrition, Non-Response, and Initial Conditions," CESifo Working Paper Series 1232, CESifo.
    22. Van den Berg, Gerard J., 2001. "Duration models: specification, identification and multiple durations," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460, Elsevier.
    23. Ghanem, Dalia & Hirshleifer, Sarojini & Kédagni, Désiré & Ortiz-Becerra, Karen, 2024. "Correcting attrition bias using changes-in-changes," Journal of Econometrics, Elsevier, vol. 241(2).
    24. Dorsett, Richard & Lucchino, Paolo, 2018. "Young people's labour market transitions: The role of early experiences," Labour Economics, Elsevier, vol. 54(C), pages 29-46.
    25. Emre Ekinci, 2009. "Dealing with Attrition When Refreshment Samples are Available: An Application to the Turkish Household Labor Force Survey," 2009 Meeting Papers 353, Society for Economic Dynamics.

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