IDEAS home Printed from https://ideas.repec.org/p/inq/inqwps/ecineq2006-47.html
   My bibliography  Save this paper

Cross-Country Income Mobility Comparisons Under Panel Attrition: The Relevance of Weighting Schemes

Author

Listed:
  • Luis Ayala

    (Instituto de Estudios Fiscales / Universidad Rey Juan Carlos)

  • Carolina Navarro

    (Universidad Nacional de Educación a Distancia)

  • Mercedes Sastre

    (Instituto de Estudios Fiscales / Universidad Complutense)

Abstract

This paper aims to present an assessment of the effects of panel attrition on income mobility comparisons for some EU-countries by using the European Community Household Panel (ECHP). There are different possibilities of correcting the attrition problem by means of alternative longitudinal weighting schemes. The sensitivity of mobility estimates to these attrition correction procedures is tested in the paper. Our results show that ECHP attrition is characterised by a certain degree of selectivity but only affecting some variables and countries. Different probability models corroborate the existence of a certain non-random attrition. The model chosen to construct the longitudinal weights to correct attrition offers up rather different results than those obtained when Eurostat’s longitudinal weights are used. Although attrition does not seem to have a great effect on aggregated mobility indicators, it does have a decisive effect on decomposition exercises. Finally, the tests conducted on income mobility indicators reveal a certain sensitivity to the weighting system used.

Suggested Citation

  • Luis Ayala & Carolina Navarro & Mercedes Sastre, 2006. "Cross-Country Income Mobility Comparisons Under Panel Attrition: The Relevance of Weighting Schemes," Working Papers 47, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2006-47
    as

    Download full text from publisher

    File URL: http://www.ecineq.org/milano/WP/ECINEQ2006-47.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. O'Connell, Philip J. & Russell, Helen & FitzGerald, John, 2006. "Human Resources," Book Chapters, in: Morgenroth, Edgar (ed.),Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013, Economic and Social Research Institute (ESRI).
    2. 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.
    3. Carlos Gradín & Olga Cantó & Coral del Río, 2008. "Inequality, poverty and mobility: Choosing income or consumption as welfare indicators," Investigaciones Economicas, Fundación SEPI, vol. 32(2), pages 169-200, May.
    4. Miguel-Angel López García, 2005. "La vivienda y la reforma fiscal de 1998: un ejercicio de simulación," Hacienda Pública Española / Review of Public Economics, IEF, vol. 175(4), pages 123-147, december.
    5. Nicoletti, Cheti & Peracchi, Franco, 2002. "A cross-country comparison of survey nonparticipation in the ECHP -ISER working paper-," ISER Working Paper Series 2002-32, Institute for Social and Economic Research.
    6. Charles J. Romeo, 2001. "Controlling for Seam Problems in Duration Model Estimates: With Application to the Current Population Survey and the Computer Aided Telephone Interview/Computer Aided Personal Interview Overlap Survey," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 467-499.
    7. Daniel H. Hill & Robert J. Willis, 2001. "Reducing Panel Attrition: A Search for Effective Policy Instruments," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 416-438.
    8. Becketti, Sean & Gould, William & Lillard, Lee & Welch, Finis, 1988. "The Panel Study of Income Dynamics after Fourteen Years: An Evaluatio n," Journal of Labor Economics, University of Chicago Press, vol. 6(4), pages 472-492, October.
    9. Markus Pannenberg, 1997. "Documentation of Sample Sizes and Panel Attrition in the German Socio Economic Panel (GSOEP) (1984 until 1996)," Discussion Papers of DIW Berlin 150, DIW Berlin, German Institute for Economic Research.
    10. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-1024, September.
    11. John Fitzgerald & Peter Gottschalk & Robert Moffitt, 1998. "An Analysis of the Impact of Sample Attrition on the Second Generation of Respondents in the Michigan Panel Study of Income Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 300-344.
    12. Ulrich Rendtel ; Felix Büchel, 1994. "Tests for Non-ignorable Panel Attrition and Their Application on Wage Estimates from the German Socio-Economic Panel (GSOEP)," Discussion Papers of DIW Berlin 89, DIW Berlin, German Institute for Economic Research.
    13. José María Arranz & Carlos García-Serrano, "undated". "¿Qué Ha Sucedido Con La Estabilidad Del Empleo En España?. Un Análisis Desagregado Con Datos De La Epa: 1987-2003(*)," Working Papers 4-04 Classification-JEL :, Instituto de Estudios Fiscales.
    14. Lawrence L. Wu & Steven P. Martin & Daniel A. Long, 2001. "Comparing Data Quality of Fertility and First Sexual Intercourse Histories," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 520-555.
    15. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
    16. Charles R. Pierret, 2001. "Event History Data and Survey Recall: An Analysis of the National Longitudinal Survey of Youth 1979 Recall Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 439-466.
    17. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
    18. Adam Davey & Michael J. Shanahan & Joseph L. Schafer, 2001. "Correcting for Selective Nonresponse in the National Longitudinal Survey of Youth Using Multiple Imputation," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 500-519.
    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. Denisa Maria Sologon & Cathal O'Donoghue, 2009. "Earnings Dynamics and Inequality in EU, 1994-2001," SOEPpapers on Multidisciplinary Panel Data Research 184, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Denisa Maria Sologon & Cathal O'Donoghue, 2014. "Shaping Earnings Insecurity: Labor Market Policy and Institutional Factors," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 205-232, May.
    3. Luis Ayala & Mercedes Sastre, 2008. "The structure of income mobility: empirical evidence from five UE countries," Empirical Economics, Springer, vol. 35(3), pages 451-473, November.
    4. Claudio, Sapelli, 2013. "Movilidad intrageneracional del ingreso en Chile," Estudios Públicos, Centro de Estudios Públicos, vol. 0(131), pages 1-35.
    5. Denisa Maria Sologon & O'Donoghue, Cathal, 2011. "Shaping earnings instability: labour market policy and institutional factors," MERIT Working Papers 2011-077, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Sara Ayllón, 2013. "Understanding poverty persistence in Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 4(2), pages 201-233, June.
    7. Fertig, Michael & Schurer, Stefanie, 2007. "Labour Market Outcomes of Immigrants in Germany – The Importance of Heterogeneity and Attrition Bias," Ruhr Economic Papers 20, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. SOLOGON Denisa & O'DONOGHUE Cathal, 2010. "Earnings Mobility in the EU: 1994-2001," LISER Working Paper Series 2010-36, Luxembourg Institute of Socio-Economic Research (LISER).
    9. Michael Fertig & Stefanie Schurer, 2007. "Earnings Assimilation of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," SOEPpapers on Multidisciplinary Panel Data Research 30, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. repec:zbw:rwirep:0020 is not listed on IDEAS
    11. Ayala, Luis & Navarro, Carolina, 2007. "The dynamics of housing deprivation," Journal of Housing Economics, Elsevier, vol. 16(1), pages 72-97, March.
    12. Michael Fertig & Stefanie Schurer, 2007. "Labour Market Outcomes of Immigrants in Germany – The Importance of Heterogeneity and Attrition Bias," Ruhr Economic Papers 0020, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

    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. P. Jenkins, Stephen & Jäntti, Markus, 2013. "Income mobility," ISER Working Paper Series 2013-23, Institute for Social and Economic Research.
    2. Michael Fertig & Stefanie Schurer, 2007. "Labour Market Outcomes of Immigrants in Germany – The Importance of Heterogeneity and Attrition Bias," Ruhr Economic Papers 0020, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Fertig, Michael & Schurer, Stefanie, 2007. "Labour Market Outcomes of Immigrants in Germany – The Importance of Heterogeneity and Attrition Bias," Ruhr Economic Papers 20, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. repec:zbw:rwirep:0020 is not listed on IDEAS
    5. Michael Fertig & Stefanie Schurer, 2007. "Earnings Assimilation of Immigrants in Germany: The Importance of Heterogeneity and Attrition Bias," SOEPpapers on Multidisciplinary Panel Data Research 30, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Stefan Hochguertel & Henry Ohlsson, 2009. "Compensatory inter vivos gifts," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(6), pages 993-1023.
    7. Nicole Watson & Mark Wooden, 2011. "Re-engaging with Survey Non-respondents: The BHPS, SOEP and HILDA Survey Experience," Melbourne Institute Working Paper Series wp2011n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    8. Thomas, Duncan & Witoelar, Firman & Frankenberg, Elizabeth & Sikoki, Bondan & Strauss, John & Sumantri, Cecep & Suriastini, Wayan, 2012. "Cutting the costs of attrition: Results from the Indonesia Family Life Survey," Journal of Development Economics, Elsevier, vol. 98(1), pages 108-123.
    9. Behr Andreas, 2006. "Comparing Estimation Strategies for Income Equations in the Presence of Panel Attrition: Empirical Results Based on the ECHP," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(4), pages 361-384, August.
    10. Weili Ding & Steven F. Lehrer, 2010. "Estimating Treatment Effects from Contaminated Multiperiod Education Experiments: The Dynamic Impacts of Class Size Reductions," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 31-42, February.
    11. Hryshko, Dmytro & Manovskii, Iourii, 2022. "How much consumption insurance in the U.S.?," Journal of Monetary Economics, Elsevier, vol. 130(C), pages 17-33.
    12. Longford, N.T. & Pittau, M.G., 2006. "Stability of household income in European countries in the 1990s," Computational Statistics & Data Analysis, Elsevier, vol. 51(2), pages 1364-1383, November.
    13. Peter Gottschalk & Enrico Spolaore, 2002. "On the Evaluation of Economic Mobility," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(1), pages 191-208.
    14. I. Ku & R. D. Plotnick, "undated". "Do Children from Welfare Families Obtain Less Education?," Institute for Research on Poverty Discussion Papers 1217-00, University of Wisconsin Institute for Research on Poverty.
    15. Marco Francesconi & Cheti Nicoletti, 2006. "Intergenerational mobility and sample selection in short panels," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(8), pages 1265-1293, December.
    16. Marianne E. Page & Gary Solon, 2003. "Correlations between sisters and neighbouring girls in their subsequent income as adults," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 545-562.
    17. Peter Gottschalk & Sheldon Danziger, 1999. "Income Mobility and Exits from Poverty of American Children, 1970-1992," Boston College Working Papers in Economics 430, Boston College Department of Economics, revised 15 Feb 2001.
    18. Nicoletti, Cheti & Peracchi, Franco, 2004. "Survey response and survey characteristics: Micro-level evidence from the ECHP," Economics & Statistics Discussion Papers esdp04015, University of Molise, Department of Economics.
    19. David Cantarero & Marta Pascual, 2005. "Regional Differences In Health In Spain - An Empirical Analysis," ERSA conference papers ersa05p551, European Regional Science Association.
    20. Niny Khor & John Pencavel, 2006. "Income mobility of individuals in China and the United States," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(3), pages 417-458, July.
    21. Rachel Dunifon & Lori Kowaleski-Jones, 2001. "Associations Between Participation in the National School Lunch Program, Food Insecurity, and Child Well-Being," JCPR Working Papers 249, Northwestern University/University of Chicago Joint Center for Poverty Research.

    More about this item

    Keywords

    Income mobility; attrition; European Community Household Panel.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

    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:inq:inqwps:ecineq2006-47. 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: Maria Ana Lugo (email available below). General contact details of provider: https://edirc.repec.org/data/ecineea.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.