Please use this identifier to cite or link to this item:
Cappellari, Lorenzo
Jenkins, Stephen P.
Year of Publication: 
Series/Report no.: 
ISER Working Paper Series 2004-08
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.
Document Type: 
Working Paper

Files in This Item:
194.83 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.