Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Inglehart says European social democracy is a victim of its own success

Bound, Khanna, and Morales find multiple effects of H1-B visas on US tech industry

Prescott says public criminal registries have downside

More News

Highlights

Heather Ann Thompson wins Bancroft Prize for History for 'Blood in the Water'

Michigan ranks in USN&WR top-10 grad schools for sociology, public health, labor economics, social policy, social psychology

Paula Lantz to speak at Women in Health Leadership Summit, March 24, 2:30-5:30 Michigan League

New site highlights research, data, and publications of Relationship Dynamics and Social Life study

More Highlights

Next Brown Bag

Mon, March 20, 2017, noon:
Dean Yang, Taken by Storm

Implications of Mean-Reverting Measurement Error for Longitudinal Studies of Wages and Employment

Archived Abstract of Former PSC Researcher

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