Identifying Labour Market Dynamics Using Labour Force Survey Data

ZEW Discussion Paper No. 01-44

47 Pages Posted: 8 Nov 2003

See all articles by Concha Artola

Concha Artola

Banco de España - Servicio de Estudios

Una-Louise Bell

University of Rome Tor Vergata - Faculty of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: 2001

Abstract

This paper evaluates the appropriateness of the standard methodologies and the quality of the data frequently used to analyse labour market dynamics in Europe. Our results indicate that, due to recall error and heterogeneous survey design, the retrospective approach tends to result in a considerable number of spurious transitions being recorded. Whilst the use of quasi-longitudinal data should overcome such problems, sample attrition and more importantly, misclassification error, is shown to result in significant over-reporting of transitions. Studies which failure to allow for the error structure of the underlying data are therefore, likely to be subject to considerable bias.

Suggested Citation

Artola, Concha and Bell, Una-Louise, Identifying Labour Market Dynamics Using Labour Force Survey Data (2001). ZEW Discussion Paper No. 01-44, Available at SSRN: https://ssrn.com/abstract=367100 or http://dx.doi.org/10.2139/ssrn.367100

Concha Artola (Contact Author)

Banco de España - Servicio de Estudios ( email )

28027 Madrid
Spain
(34) 91-338-5127 (Phone)
(34) 91-338-6041 (Fax)

Una-Louise Bell

University of Rome Tor Vergata - Faculty of Economics ( email )

Via di Tor Vergata snc
Facolta' di Economia
I-00133 Rome
Italy

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