Peer-Reviewed Journal Details
Mandatory Fields
O’Neill D.;Sweetman O.
2013
December
THE IZA JOURNAL OF LABOR ECONOMICS
The consequences of measurement error when estimating the impact of obesity on income
Published
()
Optional Fields
Auxiliary data Instrumental variables Non-classical measurement error Obesity
2
1
© 2013, O’Neill and Sweetman; licensee Springer. This paper examines the consequences of using self-reported measures of BMI when estimating the effect of BMI on income for women using both Irish and US data. We find that self-reported BMI is subject to substantial measurement error and that this error deviates from classical measurement error. These errors cause the traditional least squares estimator to overestimate the relationship between BMI and income. We show that neither the conditional expectation estimator nor the instrumental variables approach adequately address the bias and briefly discuss alternative approaches that could be considered when faced with non-classical measurement error. JEL codes: C13, C26, I14
2193-8997
10.1186/2193-8997-2-3
Grant Details