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題名 A shortcoming of the conventional approach to statistical explanation for wage or income variation: offering a better alternative
作者 林季平
Lin, Ji-Ping;Liaw, Kao-Lee
貢獻者 社會系
關鍵詞 uneven distortions; log-transformation of dependent variable; regression model; wage structure; income; nonlinear estimation
日期 2014-08
上傳時間 24-May-2024 14:24:26 (UTC+8)
摘要 In explaining wage or income by personal attributes (e.g. educational attainment, age, and ethnicity) in a regression model, many researchers choose to use the log of wage or income as the dependent variable and then to estimate the unknown coefficients by some version of the least-squares method. We call this approach the conventional approach. Using the micro data of the 2005-2007 American Community Survey and Taiwan's 2001-2010 Manpower Utilization Survey, we show that the conventional approach has the serious shortcoming of under-predicting the observed wage structure in the space spanned by the values of the explanatory variables. In addition to revealing the reason for the under-prediction problem and linking the severity of this problem to wage variability, we present a nonlinear approach that does not have this shortcoming. We also offer a SAS module for carrying out the estimation task in the nonlinear approach.
關聯 中研院
資料類型 report
dc.contributor 社會系
dc.creator (作者) 林季平
dc.creator (作者) Lin, Ji-Ping;Liaw, Kao-Lee
dc.date (日期) 2014-08
dc.date.accessioned 24-May-2024 14:24:26 (UTC+8)-
dc.date.available 24-May-2024 14:24:26 (UTC+8)-
dc.date.issued (上傳時間) 24-May-2024 14:24:26 (UTC+8)-
dc.identifier.uri (URI) https://nccur.lib.nccu.edu.tw/handle/140.119/151361-
dc.description.abstract (摘要) In explaining wage or income by personal attributes (e.g. educational attainment, age, and ethnicity) in a regression model, many researchers choose to use the log of wage or income as the dependent variable and then to estimate the unknown coefficients by some version of the least-squares method. We call this approach the conventional approach. Using the micro data of the 2005-2007 American Community Survey and Taiwan's 2001-2010 Manpower Utilization Survey, we show that the conventional approach has the serious shortcoming of under-predicting the observed wage structure in the space spanned by the values of the explanatory variables. In addition to revealing the reason for the under-prediction problem and linking the severity of this problem to wage variability, we present a nonlinear approach that does not have this shortcoming. We also offer a SAS module for carrying out the estimation task in the nonlinear approach.
dc.format.extent 107 bytes-
dc.format.mimetype text/html-
dc.relation (關聯) 中研院
dc.subject (關鍵詞) uneven distortions; log-transformation of dependent variable; regression model; wage structure; income; nonlinear estimation
dc.title (題名) A shortcoming of the conventional approach to statistical explanation for wage or income variation: offering a better alternative
dc.type (資料類型) report