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The Importance of Sample Attrition in Life Cycle Labor Supply Estimation

James P. Ziliak and Thomas J. Kniesner
The Journal of Human Resources
Vol. 33, No. 2, Special Issue: Attrition in Longitudinal Surveys (Spring, 1998), pp. 507-530
DOI: 10.2307/146439
Stable URL: http://www.jstor.org/stable/146439
Page Count: 24
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
The Importance of Sample Attrition in Life Cycle Labor Supply Estimation
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Abstract

We examine the importance of possible nonrandom attrition to an econometric model of life cycle labor supply using both a Wald test comparing attriters to nonattriters and variable addition tests based on formal models of attrition. Estimates using the Panel Study of Income Dynamics show that nonrandom attrition is of little concern when estimating prime-age male labor supply because the effect of attrition is absorbed into fixed effects in labor supply. The wage measure and instrument set have much larger effects on the estimated labor supply function of prime-age men than how one adjusts for panel attrition.

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