Abstract
In this paper, we discuss a model for pseudo-panel data when some but not all of the individuals stay in the sample for more than one period. We use data on the labor market of the Basque Country from 1993 to 1999 treated through FORTRAN 77 programing. We construct economically reasonable age cohorts for active population and use gender, qualification and social status as explanatory variables in our model. Given the class of data we use, we analyze the properties of the random error and estimate the model through maximum likelihood, finding significant results from an applied point of view.
Acknowledgements
This research was supported by Ministerio Español de Ciencia e Innovación, FEDER, and Departamento de Educación del Gobierno Vasco (UPV/EHU Econometrics Research Group) under research grants MTM2007-60112, MTM2010-14913 and IT-334-07. The authors also thank the anonymous referees for providing thoughtful comments and suggestions which led to substantial improvement of the presentation of the material in this paper.