Dynamic Labour Market Behaviour in the British Household Panel Survey : The Effects of Recall Bias and Panel Attrition.

Given the increasing use of panel data in testing hypotheses about labour market behaviour, it is essential that economists have a cound grasp of the problems involved in the collection of this type of data. This paper investigates the biases generated by recall errors and panel attrition, using data from the first four waves of the British Household Panel Survey. It then discusses the impact of these biases on conclusions drawn about labour market behaviour from studies using panel data.