On the effect of item nonresponse on the estimation of a two-panel-waves wage equation

Abstract

In this paper, we present results of the estimation of a two–panel–waves wage equation based on completely observed units and on a multiply imputed data set. In addition to the survey information, reliable income data is available from the register. These external data are used to assess the reliability of wage regressions that suffer from item nonresponse. The findings reveal marked differences between the complete case analyses and both versions of multiple imputation analyses. We argue that the results based on the multiply imputed data sets are more reliable than those based on the complete case analysis.