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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Autores principales: Volker Ludwig, Josef Brüderl
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Lenguaje:EN
Publicado: Federal Institute for Population Research 2021
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Acceso en línea:https://doaj.org/article/f911937b00e94efea27cdf402efb00f4
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spelling 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)
institution DOAJ
collection DOAJ
language EN
topic 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
spellingShingle 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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