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Support #1075

Weights in an unbalanced panel

Added by Liat Raz-Yurovich almost 4 years ago. Updated almost 4 years ago.

Status:
Resolved
Priority:
High
Category:
Weights
Start date:
10/17/2018
% Done:

100%


Description

Hello,
We have a question regarding the appropriate weights to apply when analyzing combined files from BHPS and Understanding Society (US). We aim to run a linear fixed-effects model on an unbalanced panel, meaning that we are following individuals over time, but we do not have the same number of observations (waves) for each individual, and also individuals may enter and exit at different waves. For example, we would like to include individuals who entered during different waves of BHPS (some of whom may continue to US), as well as individuals who entered in US.

We read through the correspondence in Issue #414 from 3 years ago, https://iserswww.essex.ac.uk/support/issues/414. However, it is not clear to us that the solutions suggested in that issue can be applied in our case because we would like to have as long a time frame as possible and as many individuals as possible (i.e. we do not want to limit ourselves to US waves, or to take only individuals who entered in BHPS).

We understand that since the panel is unbalanced, it is not appropriate to apply the longitudinal weights. Is that correct?

If not the longitudinal weights, then which weights would you suggest?

Are there any other related issues that we should consider (e.g. scaling)?

Thank you.

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