Semiparametric regression , measurement error , side information
Abstract:
We consider the semiparametric generalised linear regression model which has mainstream
empirical models such as the (partially) linear mean regression, logistic and multinomial regression
as special cases. As an extension to related literature we allow a misclassified covariate to
be interacted with a nonparametric function of a continuous covariate. This model is tailormade
to address known data quality issues of administrative labour market data. Using a
sample of 20m observations from Germany we estimate the determinants of labour market
transitions and illustrate the role of considerable misclassification in the educational status on
estimated transition probabilities and marginal effects.
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