What You Need to Know When Estimating Impact Functions with Panel Data for Demographic Research
The estimation of impact functions – that is the time-varying causal effect of a dichotomous treatment (e.g., marriage, divorce, parenthood) on outcomes (e.g., earnings, well-being, health) – has become a standard procedure in demographic applications. The basic methodology of estimating impact func...
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Federal Institute for Population Research
2021
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oai:doaj.org-article:f911937b00e94efea27cdf402efb00f42021-11-25T07:33:33ZWhat You Need to Know When Estimating Impact Functions with Panel Data for Demographic Research1869-89801869-899910.12765/CPoS-2021-16https://doaj.org/article/f911937b00e94efea27cdf402efb00f42021-11-01T00:00:00Zhttps://www.comparativepopulationstudies.de/index.php/CPoS/article/view/468https://doaj.org/toc/1869-8980https://doaj.org/toc/1869-8999The estimation of impact functions – that is the time-varying causal effect of a dichotomous treatment (e.g., marriage, divorce, parenthood) on outcomes (e.g., earnings, well-being, health) – has become a standard procedure in demographic applications. The basic methodology of estimating impact functions with panel data and fixed-effects regressions is now widely known. However, many researchers may not be fully aware of the methodological subtleties of the approach, which may lead to biased estimates of the impact function. In this paper, we highlight potential pitfalls and provide guidance on how to avoid these in practice. We demonstrate these issues with exemplary analyses, using data from the German Family Panel (pairfam) study and estimating the effect of motherhood on life satisfaction. * This article belongs to a special issue on “Identification of causal mechanisms in demographic research: The contribution of panel data”.Volker LudwigJosef BrüderlFederal Institute for Population Researcharticleimpact functionsfixed effects regressionnegative weighting biasmotherhoodpairfampanel data analysisUrban groups. The city. Urban sociologyHT101-395City population. Including children in cities, immigrationHT201-221Demography. Population. Vital eventsHB848-3697ENComparative Population Studies, Vol 46 (2021) |
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impact functions fixed effects regression negative weighting bias motherhood pairfam panel data analysis Urban groups. The city. Urban sociology HT101-395 City population. Including children in cities, immigration HT201-221 Demography. Population. Vital events HB848-3697 |
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impact functions fixed effects regression negative weighting bias motherhood pairfam panel data analysis Urban groups. The city. Urban sociology HT101-395 City population. Including children in cities, immigration HT201-221 Demography. Population. Vital events HB848-3697 Volker Ludwig Josef Brüderl What You Need to Know When Estimating Impact Functions with Panel Data for Demographic Research |
description |
The estimation of impact functions – that is the time-varying causal effect of a dichotomous treatment (e.g., marriage, divorce, parenthood) on outcomes (e.g., earnings, well-being, health) – has become a standard procedure in demographic applications. The basic methodology of estimating impact functions with panel data and fixed-effects regressions is now widely known. However, many researchers may not be fully aware of the methodological subtleties of the approach, which may lead to biased estimates of the impact function. In this paper, we highlight potential pitfalls and provide guidance on how to avoid these in practice. We demonstrate these issues with exemplary analyses, using data from the German Family Panel (pairfam) study and estimating the effect of motherhood on life satisfaction.
* This article belongs to a special issue on “Identification of causal mechanisms in demographic research: The contribution of panel data”. |
format |
article |
author |
Volker Ludwig Josef Brüderl |
author_facet |
Volker Ludwig Josef Brüderl |
author_sort |
Volker Ludwig |
title |
What You Need to Know When Estimating Impact Functions with Panel Data for Demographic Research |
title_short |
What You Need to Know When Estimating Impact Functions with Panel Data for Demographic Research |
title_full |
What You Need to Know When Estimating Impact Functions with Panel Data for Demographic Research |
title_fullStr |
What You Need to Know When Estimating Impact Functions with Panel Data for Demographic Research |
title_full_unstemmed |
What You Need to Know When Estimating Impact Functions with Panel Data for Demographic Research |
title_sort |
what you need to know when estimating impact functions with panel data for demographic research |
publisher |
Federal Institute for Population Research |
publishDate |
2021 |
url |
https://doaj.org/article/f911937b00e94efea27cdf402efb00f4 |
work_keys_str_mv |
AT volkerludwig whatyouneedtoknowwhenestimatingimpactfunctionswithpaneldatafordemographicresearch AT josefbruderl whatyouneedtoknowwhenestimatingimpactfunctionswithpaneldatafordemographicresearch |
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1718413657912639488 |