R: PSID Earnings Panel Data (1976-1982)

PSID7682 {AER} | R Documentation

## PSID Earnings Panel Data (1976–1982)

### Description

Panel data on earnings of 595 individuals for the years 1976–1982, originating from the Panel Study of Income Dynamics.

### Usage

    data("PSID7682")

### Format

A data frame containing 7 annual observations on 12 variables for 595 individuals.

experience

  Years of full-time work experience.

weeks

  Weeks worked.

occupation

  factor. Is the individual a white-collar (`"white"`) or blue-collar (`"blue"`) worker?

industry

  factor. Does the individual work in a manufacturing industry?

south

  factor. Does the individual reside in the South?

smsa

  factor. Does the individual reside in a SMSA (standard metropolitan statistical area)?

married

  factor. Is the individual married?

gender

  factor indicating gender.

union

  factor. Is the individual's wage set by a union contract?

education

  Years of education.

ethnicity

  factor indicating ethnicity. Is the individual African-American (`"afam"`) or not (`"other"`)?

wage

  Wage.

year

  factor indicating year.

id

  factor indicating individual subject ID.

### Details

The data were originally analyzed by Cornwell and Rupert (1988) and employed for assessing various instrumental-variable estimators for panel models (including the Hausman-Taylor model). Baltagi and Khanti-Akom (1990) reanalyzed the data, made corrections to the data and also suggest modeling with a different set of instruments.

`PSID7682` is the version of the data as provided by Baltagi (2005), or Greene (2008).

Baltagi (2002) just uses the cross-section for the year 1982, i.e., `subset(PSID7682, year == "1982")`. This is also available as a standalone data set `PSID1982` because it was included in AER prior to the availability of the full `PSID7682` panel version.

### Source

Online complements to Baltagi (2005).

http://www.wiley.com/legacy/wileychi/baltagi3e/data_sets.html

Also provided in the online complements to Greene (2008), Table F9.1.

http://pages.stern.nyu.edu/~wgreene/Text/Edition6/tablelist6.htm

### References

Baltagi, B.H., and Khanti-Akom, S. (1990). On Efficient Estimation with Panel Data: An Empirical Comparison of Instrumental Variables Estimators. Journal of Applied Econometrics, 5, 401–406.

Baltagi, B.H. (2001). Econometric Analysis of Panel Data, 2nd ed. Chichester, UK: John Wiley.

Baltagi, B.H. (2002). Econometrics, 3rd ed. Berlin, Springer.

Baltagi, B.H. (2005). Econometric Analysis of Panel Data, 3rd ed. Chichester, UK: John Wiley.

Cornwell, C., and Rupert, P. (1988). Efficient Estimation with Panel Data: An Empirical Comparison of Instrumental Variables Estimators. Journal of Applied Econometrics, 3, 149–155.

Greene, W.H. (2008). Econometric Analysis, 6th ed. Upper Saddle River, NJ: Prentice Hall.

### See Also

`PSID1982`, `Baltagi2002`

### Examples

    data("PSID7682")

    library("plm")
    psid <- plm.data(PSID7682, c("id", "year"))

    ## Baltagi & Khanti-Akom, Table I, column "HT"
    ## original Cornwell & Rupert choice of exogenous variables
    psid_ht1 <- plm(log(wage) ~ weeks + south + smsa + married +
      experience + I(experience^2) + occupation + industry + union + gender + ethnicity + education |
      weeks + south + smsa + married + gender + ethnicity,
      data = psid, model = "ht")

    ## Baltagi & Khanti-Akom, Table II, column "HT"
    ## alternative choice of exogenous variables
    psid_ht2 <- plm(log(wage) ~ occupation + south + smsa + industry +
      experience + I(experience^2) + weeks + married + union + gender + ethnicity + education |
      occupation + south + smsa + industry + gender + ethnicity,
      data = psid, model = "ht")

    ## Baltagi & Khanti-Akom, Table III, column "HT"
    ## original choice of exogenous variables + time dummies
    ## (see also Baltagi, 2001, Table 7.1)
    psid$time <- psid$year
    psid_ht3 <- plm(log(wage) ~ weeks + south + smsa + married + experience + I(experience^2) +
      occupation + industry + union + gender + ethnicity + education + time |
      weeks + south + smsa + married + gender + ethnicity + time,
      data = psid, model = "ht")

[Package AER version 1.2-5 Index]