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Which Factors Safeguard Employment? An Analysis with Misclassified German Register DataLaura WichertDeutsche Bundesbank - Economics Department; University of Konstanz - Department of Economics Ralf A. WilkeUniversity of York (UK); Center for European Economic Research (ZEW); Policy Studies Institute (PSI) December 2010 FDZ-Methodenreport No. 11/2010 Abstract: We analyse the main determinants for job separation with transition to unemployment using individual administrative data from Germany. While the sample size is large and the information in target variables is often highly accurate, non-target variables are subject to considerable measurement error due to a lack of relevance for the data generating process. We show that the high degree of misclassification can even persist after comprehensive logical editing and imputation rules were applied. We find that the measurement error has a sizable effect on our estimation results. Long tenure rather than a higher educational qualification appears to be the key ingredient for a safe job in Germany.
Number of Pages in PDF File: 34 Keywords: unemployment risk, nonclassical measurement error, MC-SIMEX JEL Classification: C81, J63 working papers seriesDate posted: January 23, 2011Suggested Citation |
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