PSID Earnings Panel Data (1976–1982)

Description

Panel data on earnings of 595 individuals for the years 1976–1982, originating from the Panel Study of Income Dynamics.

Usage

data("PSID7682")

Format

A data frame containing 7 annual observations on 12 variables for 595 individuals.

experience

Years of full-time work experience.

weeks

Weeks worked.

occupation

factor. Is the individual a white-collar ("white") or blue-collar ("blue") worker?

industry

factor. Does the individual work in a manufacturing industry?

south

factor. Does the individual reside in the South?

smsa

factor. Does the individual reside in a SMSA (standard metropolitan statistical area)?

married

factor. Is the individual married?

gender

factor indicating gender.

union

factor. Is the individual's wage set by a union contract?

education

Years of education.

ethnicity

factor indicating ethnicity. Is the individual African-American ("afam") or not ("other")?

wage

Wage.

year

factor indicating year.

id

factor indicating individual subject ID.

Details

The data were originally analyzed by Cornwell and Rupert (1988) and employed for assessing various instrumental-variable estimators for panel models (including the Hausman-Taylor model). Baltagi and Khanti-Akom (1990) reanalyzed the data, made corrections to the data and also suggest modeling with a different set of instruments.

PSID7682 is the version of the data as provided by Baltagi (2005), or Greene (2008).

Baltagi (2002) just uses the cross-section for the year 1982, i.e., subset(PSID7682, year == "1982"). This is also available as a standalone data set PSID1982 because it was included in AER prior to the availability of the full PSID7682 panel version.

Source

Online complements to Baltagi (2005).

http://www.wiley.com/legacy/wileychi/baltagi3e/data_sets.html

Also provided in the online complements to Greene (2008), Table F9.1.

https://pages.stern.nyu.edu/~wgreene/Text/Edition6/tablelist6.htm

References

Baltagi, B.H., and Khanti-Akom, S. (1990). On Efficient Estimation with Panel Data: An Empirical Comparison of Instrumental Variables Estimators. Journal of Applied Econometrics, 5, 401–406.

Baltagi, B.H. (2001). Econometric Analysis of Panel Data, 2nd ed. Chichester, UK: John Wiley.

Baltagi, B.H. (2002). Econometrics, 3rd ed. Berlin, Springer.

Baltagi, B.H. (2005). Econometric Analysis of Panel Data, 3rd ed. Chichester, UK: John Wiley.

Cornwell, C., and Rupert, P. (1988). Efficient Estimation with Panel Data: An Empirical Comparison of Instrumental Variables Estimators. Journal of Applied Econometrics, 3, 149–155.

Greene, W.H. (2008). Econometric Analysis, 6th ed. Upper Saddle River, NJ: Prentice Hall.

See Also

PSID1982, Baltagi2002

Examples

data("PSID7682")

library("plm")
psid <- pdata.frame(PSID7682, c("id", "year"))

## Baltagi & Khanti-Akom, Table I, column "HT"
## original Cornwell & Rupert choice of exogenous variables
psid_ht1 <- plm(log(wage) ~ weeks + south + smsa + married +
  experience + I(experience^2) + occupation + industry + union + gender + ethnicity + education |
  weeks + south + smsa + married + gender + ethnicity,
  data = psid, model = "ht")

## Baltagi & Khanti-Akom, Table II, column "HT"
## alternative choice of exogenous variables
psid_ht2 <- plm(log(wage) ~ occupation + south + smsa + industry +
  experience + I(experience^2) + weeks + married + union + gender + ethnicity + education |
  occupation + south + smsa + industry + gender + ethnicity,
  data = psid, model = "ht")

## Baltagi & Khanti-Akom, Table III, column "HT"
## original choice of exogenous variables + time dummies
## (see also Baltagi, 2001, Table 7.1)
psid$time <- psid$year
psid_ht3 <- plm(log(wage) ~ weeks + south + smsa + married + experience + I(experience^2) +
  occupation + industry + union + gender + ethnicity + education + time |
  weeks + south + smsa + married + gender + ethnicity + time,
  data = psid, model = "ht")