Semiparametric Estimation of Single-Index Transition Intensities

This research develops semiparametric kernel-based estimators of state-specific conditional transition intensities, h(y|x), for duration models with right-censoring and/or multiple destinations (competing risks). Both discrete and continuous duration data are considered. The maintained assumption is that h(y|x) depends on x only through an index x'b. In contrast to existing semiparametric estimators, proportional intensities is not assumed. The new estimators are asymptotically normally distributed. The estimator of b is root-n consistent. The estimator of h(y|x) achieves the one-dimensional rate of convergence. Thus the single-index assumption eliminates the "curse of dimensionality". The estimators perform well in Monte Carlo experiments.

Parents' Economic Support of Young-Adult Children: Do Socioeconomic Circumstances Matter?

This paper assesses how the economic support provided by parents to young adults as they complete their education and enter the labor market is related to the family's socioeconomic circumstances. We address this issue using detailed survey data on intergenerational co-residence and financial transfers merged with nearly a decade of administrative data on the family's welfare receipt while the young person was growing up. We find that young people who experience socioeconomic disadvantage are more likely to be residentially and financially independent of their parents than are their peers growing up in more advantaged circumstances. This disparity is larger for financial transfers than for co-residence and increases as young people age. Moreover, there is a clear link between parental support and a young person's engagement in study and work which is generally stronger at age 20 than at age 18 and is often stronger for advantaged than for disadvantaged youths. We find no evidence, however, that a lack of parental support explains the socioeconomic gradient in either studying or employment.co-residence, financial transfers, socioeconomic disadvantage, youth outcomes

Equivalent representations of discrete-time two-state panel data models

There are two common approaches to analyzing discrete-time two-state panel data: one focuses on modeling the determinants of state occupancy, the other on modeling the determinants of transition between states. This note shows that there are one-to-one correspondences between the two representations, between the two probability distributions in an unrestricted context, and between low-order Markov models of state occupancy and semi-Markov models of transition between states with strictly limited duration dependence.Tue Gorgens' research was supported in part by Australian Research Council Grant DP1096862. Dean Hyslop’s research was supported in part by the Royal Society of New Zealand Marsden Fund Grant MEP1301

The specification of dynamic discrete-time two-state panel data models

This paper compares two approaches to analyzing longitudinal discrete-time binary outcomes. Dynamic binary response models focus on state occupancy and typically specify low-order Markovian state dependence. Multi-spell duration models focus on transitions between states and typically allow for state-specific duration dependence. We show that the former implicitly impose strong and testable restrictions on the transition probabilities. In a case study of poverty transitions, we show that these restrictions are severely rejected against the more flexible multi-spell duration models.T.G.’s research was supported in part by Australian Research Council Grant DP1096862. D.R.H.’s research was supported in part by the Royal Society of New Zealand Marsden Fund Grant MEP1301

Threshold Regression with Endogeneity for Short Panels

This paper considers the estimation of dynamic threshold regression models with fixed effects using short panel data. We examine a two-step method, where the threshold parameter is estimated nonparametrically at the N-rate and the remaining parameters are estimated by GMM at the N−−√ -rate. We provide simulation results that illustrate advantages of the new method in comparison with pure GMM estimation. The simulations also highlight the importance of the choice of instruments in GMM estimation.Tue Gørgens’ research was supported in part by Australian Research Council Grant DP1096862

The specification of dynamic discrete-time two-state panel data models

This paper compares two approaches to analyzing longitudinal discrete-time binary outcomes. Dynamic binary response models focus on state occupancy and typically specify low-order Markovian state dependence. Multi-spell duration models focus on transitions between states and typically allow for state-specific duration dependence. We show that the former implicitly impose strong and testable restrictions on the transition probabilities. In a case study of poverty transitions, we show that these restrictions are severely rejected against the more flexible multi-spell duration models.T.G.’s research was supported in part by Australian Research Council Grant DP1096862. D.R.H.’s research was supported in part by the Royal Society of New Zealand Marsden Fund Grant MEP130

Private School Usage in Australia 1975-2010: Evidence from the Household Expenditure Surveys

The use of private schools in Australia hasincreased greatly since the 1970s. This articleshows that most of the growth has beenconcentrated in attendance at low‐fee schools,while the growth in using high‐fee schools hasbeen modest. Furthermore, the increase hasoccurred for households at all income levels,for both single‐parent and two‐parent house-holds, for households of all sizes, andirrespective of whether the household refer-ence person is born in Australia or elsewhere.However, increasing income and changes inhousehold composition can account only for asmall part of the trend.This research was supported in part by Australian Research Council grants LX0883152 and DP109686

Semiparametric Estimation of Single-Index Hazard Functions Without Proportional Hazards

This research develops a semiparametric kernel-based estimator of hazard functions which does not assume proportional hazards. The maintained assumption is that the hazard functions depend on regressors only through a linear index. The estimator permits both discrete and continuous regressors, both discrete and continuous failure times, and can be applied to right-censored data and to multiple-risks data, in which case the hazard functions are risk-specific. The estimator is root- n consistent and asymptotically normally distributed. The estimator performs well in Monte Carlo experiments

Reservation wages and working hours for recently unemployed U.S. women

This paper estimates a structural model of job search behavior where jobs are characterized by both wages and working hours. Worker heterogeneity is taken into account by including covariates in the job offer distribution and the utility function. The estimates are bias-corrected using a statistical model of measurement error designed to accommodate recent evidence on the empirical distribution of measurement errors. The results suggest that the difference between full time and part time reservation wages vary from - 16% to 31%, depending on the characteristics of the individual. The hypothesis that full and part time reservation wages are identical is rejected