This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Request Permissions Request Reprints Add to My Marked Citations Citing Articles Citing Articles via Google Scholar Google Scholar Articles by HUMPHREYS, K. Search for Related Content Social Bookmarking                   What's this?

The Latent Markov Chain with Multivariate Random Effects

An Evaluation of Instruments Measuring Labor Market Status in the British Household Panel Study

Stockholm University

An analytically tractable latent Markov chain with correlated random effects from Gamma distributions is developed by combining techniques developed in latent class modeling and random effects modeling of survival and recurrent binary events data. Continuous unobserved heterogeneity in both classification error and latent class membership is allowed for. The model is used to compare a number of instruments that measure male labor market status in the British Household Panel Survey. Instrument specific, correlated random effects for classification errors are specified. Although the presented methodology is limited to binary events and specific distributional forms for the random effects, the analysis illustrates the importance of trying to understand and allow for potential complexities in classification error processes, if measurement error adjustments are to be relied on. The standard result of such analyses, that nontreatment of dependent classification errors leads to underestimation of the number of "changers," is emphasized here.

CiteULike    Connotea    Del.icio.us    Digg    Reddit    Technorati    What's this?