EconPapers    
Economics at your fingertips  
 

Constructing Full Adult Life-cycles from Short Panels

Peter Levell and Jonathan Shaw

International Journal of Microsimulation, 2016, vol. 9, issue 2, 5-40

Abstract: In this paper we discuss two alternative approaches to constructing complete adult life-cycles using data from an 18-year panel. The first of these is a splicing approach - closely related to imputation - that involves stitching together individuals observed at different ages. The second is a microsimulation approach that uses panel data to estimate transition probabilities between different states at adjacent ages and then simulates a large number of individuals with different initial values. Our aim throughout is to construct life-cycle profiles of employment, earnings and family circumstances that are representative of UK individuals born between 1945 and 1954. On balance, we find the microsimulation approach is to be preferred because it allows us to correct for observable differences across cohorts, and it is more amenable to counterfactual modelling.

Keywords: Microsimulation models; Lifetime income distribution (search for similar items in EconPapers)
JEL-codes: C81 D31 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.microsimulation.org/IJM/V9_2/IJM_9_2_2016_Levell.pdf (application/pdf)

Related works:
Working Paper: Constructing full adult life-cycles from short panels (2015) Downloads
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:ijm:journl:v:9:y:2016:i:2:p:5-40

Access Statistics for this article

International Journal of Microsimulation is currently edited by Matteo Richiardi

More articles in International Journal of Microsimulation from International Microsimulation Association
Bibliographic data for series maintained by Jinjing Li ().

 
Page updated 2019-09-12
Handle: RePEc:ijm:journl:v:9:y:2016:i:2:p:5-40