Article,
Generalized partially linear regression with misclassified data and an application to labour market transitions
Affiliations
- [1] Centre for European Economic Research (ZEW) [NORA names: Germany; Europe, EU; OECD];
- [2] Ruprecht-Karls-Universität Heidelberg [NORA names: Germany; Europe, EU; OECD];
- [3] Copenhagen Business School [NORA names: CBS Copenhagen Business School; University; Denmark; Europe, EU; Nordic; OECD];
- [4] Université de Strasbourg [NORA names: France; Europe, EU; OECD]
Abstract
Large data sets that originate from administrative or operational activity are increasingly used for statistical analysis as they often contain very precise information and a large number of observations. But there is evidence that some variables can be subject to severe misclassification or contain missing values. Given the size of the data, a flexible semiparametric misclassification model would be good choice but their use in practise is scarce. To close this gap a semiparametric model for the probability of observing labour market transitions is estimated using a sample of 20 m observations from Germany. It is shown that estimated marginal effects of a number of covariates are sizeably affected by misclassification and missing values in the analysis data. The proposed generalized partially linear regression extends existing models by allowing a misclassified discrete covariate to be interacted with a nonparametric function of a continuous covariate.