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Two‐Wave Panel Analysis: Comparing Statistical Methods for Studying the Effects of Transitions
Author(s) -
Johnson David
Publication year - 2005
Publication title -
journal of marriage and family
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.578
H-Index - 159
eISSN - 1741-3737
pISSN - 0022-2445
DOI - 10.1111/j.1741-3737.2005.00194.x
Subject(s) - panel data , panel analysis , econometrics , panel survey , british household panel survey , psychology , statistical analysis , fixed effects model , statistics , mathematics , demographic economics , economics
Study of the effect of transitions on individual and family outcomes is central to understanding families over the life course. There is little consensus, however, on the appropriate statistical methods needed to study transitions in panel data. This article compares lagged dependent variable (LDV) and change score (CS) methods for analyzing the effect of events in two‐wave panel data. The methods are described, and their performances are compared both with a simulation and a substantive example using the National Survey of Families and Households two‐wave panel. The results suggest that CS methods have advantages over LDV techniques in estimating the effect of events on outcomes in two‐wave panel data.