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Estimating low pay transition probabilities accounting for endogenous selection mechanisms

Cappellari, Lorenzo and Jenkins, Stephen P. (2008) Estimating low pay transition probabilities accounting for endogenous selection mechanisms. Journal of the Royal Statistical Society: Series C (Applied Statistics), 57 (2). pp. 165-186. ISSN 0035-9254

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Abstract

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.

Item Type: Article
Official URL: http://www.wiley.com/bw/journal.asp?ref=0035-9254
Additional Information: © 2008 Royal Statistical Society
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor
Sets: Departments > Social Policy
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 02 Feb 2011 16:22
URL: http://eprints.lse.ac.uk/32043/

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