(Don't) Walk This Way: The Econometrics of Crosswalks

Daniel Millimet

No 17154, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: It is increasingly common in empirical research to merge data sets containing different units of observation. When the units are not nested, a crosswalk specifying how the units from one data source are allocated to the units of the other is needed. Unfortunately, most crosswalks are ad hoc, a fact that is often ignored by researchers and has not caught the attention of econometricians. Here, I show that use of an incorrect crosswalk induces measurement error that is necessarily nonclassical and can be consequential. I discuss and illustrate the ramifications of using a flawed crosswalk, present two specification tests, offer potential solutions, and provide an application to the effects of social media on political polarization.

Keywords: crosswalk; nonclassical measurement error; social media; polarization (search for similar items in EconPapers)
JEL-codes: C18 C81 D72 J16 (search for similar items in EconPapers)
Pages: 69 pages
Date: 2024-07
New Economics Papers: this item is included in nep-lab
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