Estimating low pay transition probabilities accounting for endogenous selection mechanisms

Lorenzo Cappellari and Stephen Jenkins

Journal of the Royal Statistical Society Series C, 2008, vol. 57, issue 2, 165-186

Abstract: Summary. We propose a model of transitions into and out of low paid employment that accounts for non‐ignorable panel dropout, employment retention and base year low pay status (‘initial conditions’). The model is fitted to data for men from the British Household Panel Survey. Initial conditions and employment retention are found to be non‐ignorable selection processes. Whether panel dropout is found to be ignorable depends on how item non‐response on pay is treated. Notwithstanding these results, we also find that models incorporating a simpler approach to accounting for non‐ignorable selections provide estimates of covariate effects that differ very little from the estimates from the general model.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (50)

Downloads: (external link)
https://doi.org/10.1111/j.1467-9876.2007.00607.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jorssc:v:57:y:2008:i:2:p:165-186

Ordering information: This journal article can be ordered from
http://ordering.onli ... 1111/(ISSN)1467-9876

Access Statistics for this article

Journal of the Royal Statistical Society Series C is currently edited by R. Chandler and P. W. F. Smith

More articles in Journal of the Royal Statistical Society Series C from Royal Statistical Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().