Swaffield, J.K. (2001) Does measurement error bias fixed-effects estimates of the union wage effect? Oxford Bulletin of Economics and Statistics, 63 (4). pp. 437-457. ISSN 0305-9049
This paper compares estimates of the union wage effect using cross-section and panel estimators for male manual full-time and female employees using data from the British Household Panel Survey, 1991-1997. A comparison of cross-section and panel estimates suggests that unobserved heterogeneity biases cross-section estimates upwards. However, it is also found that the divergence between estimates is overstated because measurement error biases the fixed-effects estimates downward. Reducing measurement error in the union variable by taking averages and restricting changes in union status to occur only when a change in employer and/or job takes place increases fixed-effects estimates of the union wage effect.
|Institution:||The University of York|
|Academic Units:||The University of York > Economics and Related Studies (York)|
|Depositing User:||York RAE Import|
|Date Deposited:||07 Apr 2009 11:28|
|Last Modified:||07 Apr 2009 11:28|