Measurement Error for Welfare Receipt and Its Impact on Fixed-Effects Models - ARCHIVED

Articles and reports: 11-522-X201300014262

Description:

Measurement error is one source of bias in statistical analysis. However, its possible implications are mostly ignored One class of models that can be especially affected by measurement error are fixed-effects models. By validating the survey response of five panel survey waves for welfare receipt with register data, the size and form of longitudinal measurement error can be determined. It is shown, that the measurement error for welfare receipt is serially correlated and non-differential. However, when estimating the coefficients of longitudinal fixed effect models of welfare receipt on subjective health for men and women, the coefficients are biased only for the male subpopulation.

Issue Number: 2013000
Author(s): Eggs, Johannes
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PDFOctober 31, 2014

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