PSC In The News
Bailey and Dynarski cited in piece on why quality education should be a "civil and moral right"
Kalousova and Burgard find credit card debt increases likelihood of foregoing medical care
Highlights
Arline Geronimus wins Excellence in Research Award from School of Public Health
Yu Xie to give DBASSE's David Lecture April 30, 2013 on "Is American Science in Decline?"
U-M grad programs do well in latest USN&WR "Best" rankings
Sheldon Danziger named president of Russell Sage Foundation
Back in September
Follow us Implications of Mean-Reverting Measurement Error for Longitudinal Studies of Wages and Employment
Kim, B., and Gary Solon. 2005. "Implications of Mean-Reverting Measurement Error for Longitudinal Studies of Wages and Employment." Review of Economics and Statistics, 87(1): 193-196.
This note examines the implications of mean-reverting measurement error for two influential literatures based on longitudinal survey data: (1) the literature on real wage variation over the business cycle and (2) the literature on intertemporal substitution in labor supply. Accounting for mean-reverting measurement error suggests that real wages may be even more procyclical than indicated by recent longitudinal studies. We also find that the instrumental variables estimator commonly used in intertemporal substitution studies is inconsistent if changes in earnings and hours of work are measured with different degrees of mean reversion, but the magnitude of the resulting inconsistency appears to be small.
DOI:10.1162/0034653053327685 (Full Text)
Browse | Search : All Pubs | Next