Which Factors Safeguard Employment? An Analysis with Misclassified German Register Data
Deutsche Bundesbank - Economics Department; University of Konstanz - Department of Economics
Ralf A. Wilke
University of York (UK); Center for European Economic Research (ZEW); Policy Studies Institute (PSI)
FDZ-Methodenreport No. 11/2010
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, J63working papers series
Date posted: January 23, 2011
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