Comparing Fixed Effects and Covariance Structure Estimators

In this paper we compare the traditional econometric fixed effect/first difference estimator with the maximum likelihood estimator implied by covariance structure models for panel data. Our findings are that the maximum likelihood estimator is remarkable robust to mis-specifications, however in general the fixed estimator is preferable in small samples. Furthermore, we argue that we can use the Hausman test as a test of consistency of the maximum likelihood estimator. Finally we show that the covariance structure models is not identified in the case of time-invariant independent variables.

Intergenerational Educational Mobility in the Comprehensive Danish Welfare State: Testing the Primacy of Non-monetary Social Origin Effects

The aim of this paper is investigate the extent to which monetary and non-monetary social background factors explain intergenerational educational attainment in Denmark. The main hypothesis tested is that non-monetary social background factors (cultural, social, and cognitive parental resources) are particularly important relative to economic factors within the institutional context of the comprehensive and highly redistributive Danish welfare state. Drawing on the notion of ‘capital’ by Pierre Bourdieu and a longitudinal Danish data set, we find that parental economic capital is of little importance in explaining educational outcomes, while different non-monetary social background resources, and especially cultural capital, are very important. Our findings then indicate that a particular Scandinavian institutional “mobility regime” may exist in which educational inequalities are predominantly generated by non-monetary forms of stratification. Several suggestions for future research are also discussed.intergenerational educational mobility; Denmark; mobility regimes; Bourdieu; forms of capital; mixed logit model; concomitant variables; confirmatory factor analysis

Does graded return to work improve disabled workers’ labor market attachment?

Using Danish register and survey data, we examine the effect of a national graded return-to-work program on the probability of sick-listed workers returning to regular working hours. During program participation, the worker receives the normal hourly wage for the hours worked and sickness benefit for the hours off work. When the worker’s health improves, working hours are increased until the sick-listed worker is able to work regular hours. Taking account of unobserved differences between program participants and non-participants, we find that participation in the program significantly increases the probability of returning to regular working hours.