AN ANALYSIS OF ATTRITION IN THE PANEL STUDY OF INCOME DYNAMICS AND THE SURVEY OF INCOME AND PROGRAM PARTICIPATION WITH AN APPLICATION TO A MODEL OF LABOR-MARKET BEHAVIOR

This paper analyzes attrition behavior in two major longitudinal surve ys, the Panel Study of Income Dynamics (PSID) and the Survey of Income and Program Participation (SIPP). Significant indicators in a model o f attrition include measures of mobility and variables that correspond to the interviewer and the interview process. There is evidence that surveys with more waves or higher frequency interviews experience high er attrition rates. The estimation results for a model of attrition an d labor market behavior show little indication of bias due to attritio n but there is evidence that the labor market behavior of attritors an d nonattritors is different.