Low-wage employment in Portugal: a mixed logit approach

In this paper, we examine the determinants of low-wage employment in Portugal. For this purpose, we use a data file of the European Community Household Panel (ECHP) for the years 1998 and 1999. In order to take into account unobserved heterogeneity in the data, a random-parameter logit model is used to analyse the probability of a worker receiving a low wage. The results indicate that the consideration that the effects of the explanatory variables are the same across all individuals, such as is assumed in most of the literature may be misleading. From the policy perspective, this implies that the use of a single instrument in order to combat low-wage employment is inappropriate to satisfy the whole population. In view of this, policies tailored by clusters would be more appropriate.low-wage employment, random-parameter logit model, public policy.

A bootstrap test for single index models

Single index model are frequently used econometrics and biometrics. Logit and Probit models are special cases with fixed link functions. in this paper we consider a bootstrap specification test that detects nonparametric deviations of the link function. The bootstrap is used with the aim to find a more accurate distribution under the null than the normal approximation. We prove that the statistic and the statistic and its bootstrapped version have the same asymptotic distribution. In a simulation study we show that the bootstrap is able to capture the negative bias and the skewness of the test statistic. It yields better approximations to the true critical values and consequently it has accurate level than the normal approximation.info:eu-repo/semantics/publishedVersio

Parametric and semiparametric specification tests for binary choice models: a comparative simulation study

Although semiparametric alternatives are available, parametric binary choice models are widely used in practice, in spite of their sensitivity to misspecification. Here we present the results of a simulation study on the finite sample performance of parametric and semiparametric specification tests for this kind of models. The results obtained indicate that the computationally demanding semiparametric tests do not generally outperform the simpler score tests against parametric alternatives

ARE USA CITIZENS AT RISK OF TERRORISM IN EUROPE?

This paper analyzes the determinants of the probability of US citizens being victims of terrorist attacks in European countries, taking into account uncontrolled heterogeneity of the data. The analysis employs ITERATE data from February 1968 to December 2002 to ascertain significant characteristics that influence the probability (e.g. location, type of casualties, type of attack, and type of terrorists). To deal with the unobserved heterogeneity a random-parameter logit model (mixed logit) is used. Some policy implications are presented.Terrorism, Mixed Logit model, Public policy,