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Title:Modelling low pay transition probabilities, accounting for panel attrition, non-response, and initial conditions PDF Logo
Authors:Cappellari, Lorenzo
Jenkins, Stephen P.
Issue Date:2004
Series/Report no.:CESifo working papers 1232
Abstract:We model annual low pay transition probabilities taking account of three potentially endogenous selections: two sample drop-out mechanisms (panel attrition, non-employment) and ?initial conditions? (base-year low pay status). This model, and variants that ignore one or more of these selection mechanisms, are fitted to data for men from the British Household Panel Survey. Tests of the ignorability of the endogenous selection mechanisms suggest that ?economic? selection mechanisms such as initial conditions and retention of employment are more important than the ?survey? selection mechanism (attrition). However, consistent with related US research, relatively simple models provide estimates of covariate effects that differ little from the estimates from the complicated models.
Subjects:transition probabilities
low pay
attrition
non-response
ignorability
JEL:C33
J64
J31
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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