Jm. Poterba et Lh. Summers, UNEMPLOYMENT BENEFITS AND LABOR-MARKET TRANSITIONS - A MULTINOMIAL LOGIT MODEL WITH ERRORS IN CLASSIFICATION, Review of economics and statistics, 77(2), 1995, pp. 207-216
This paper utilizes validation data on survey response error in the Cu
rrent Population Survey to generalize the standard multinomial logit m
odel to allow for spurious events that result from classification erro
r. Our basic approach could be used with other stochastic models of di
screte events as well. We illustrate our algorithm by studying the eff
ect of unemployment insurance (UI) on transitions from unemployment to
employment and on labor force withdrawal. Our results confirm earlier
work suggesting that UI lengthens unemployment spells, and show that
correcting for classification error strengthens the apparent effect of
UI on spell durations.