The Importance of Sample Attrition in Life Cycle Labor Supply Estimation

34 Pages Posted: 14 Jan 1997

See all articles by Thomas J. Kniesner

Thomas J. Kniesner

Claremont Graduate University - Department of Economic Sciences; Syracuse University - Department of Economics; IZA

James P. Ziliak

University of Kentucky - Department of Economics

Date Written: June 5, 1996

Abstract

We examine the importance of possible non-random attrition to an econometric model of life cycle labor supply including joint nonlinear taxation of wage and interest incomes and latent heterogeneity. We use a Wald test comparing attriters to nonattriters and variable addition testing based on formal models of attrition. Results from the Panel Study of Income Dynamics are that non-random panel attrition is of little concern for prime-aged male labor supply estimation because the effect of attrition is absorbed into the fixed effects. Attrition is less econometrically influential than research design decisions typically taken for granted; the wage measure or instrument set has a much greater impact on the estimated labor supply function of prime-aged men than how one includes panel attrition.

JEL Classification: J22, C23, C33

Suggested Citation

Kniesner, Thomas J. and Ziliak, James P., The Importance of Sample Attrition in Life Cycle Labor Supply Estimation (June 5, 1996). Available at SSRN: https://ssrn.com/abstract=1795 or http://dx.doi.org/10.2139/ssrn.1795

Thomas J. Kniesner (Contact Author)

Claremont Graduate University - Department of Economic Sciences ( email )

Claremont, CA 91711
United States

Syracuse University - Department of Economics ( email )

Syracuse, NY 13244-1020
United States

IZA

P.O. Box 7240
Bonn, D-53072
Germany

James P. Ziliak

University of Kentucky - Department of Economics ( email )

Lexington, KY 40506
United States

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