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What You Need to Know When Estimating Impact Functions with Panel Data for Demographic Research
[journal article]
Abstract 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... view more
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.... view less
Keywords
demography; data capture; panel; research approach; motherhood; satisfaction with life; Federal Republic of Germany
Classification
Methods and Techniques of Data Collection and Data Analysis, Statistical Methods, Computer Methods
Family Sociology, Sociology of Sexual Behavior
Free Keywords
Impact functions; Fixed effects regression; Negative weighting bias; German Family Panel (pairfam), release 11.0; Panel data analysis
Document language
English
Publication Year
2021
Page/Pages
p. 453-486
Journal
Comparative Population Studies - Zeitschrift für Bevölkerungswissenschaft, 46 (2021)
Issue topic
Identification of causal mechanisms in demographic research: the contribution of panel data
ISSN
1869-8999
Status
Published Version; peer reviewed