Using black male health insurance data from the 1984 SIPP Panel as an example, this paper describes a test for the presence of attrition bias and a consistent estimator for the level of health insurance coverage in the presence of attrition bias. The test and estimator jointly model the attrition and health insurance coverage processes using random effects panel probit models in which the random effects are allowed to be correlated. The empirical results suggest that for black males, ignoring attrition bias leads to a positive time trend for health insurance coverage, when the true, corrected-for-attrition bias time trend is negative.
Originally published in: Proceedings of the Bureau of the Census 1991 Annual Research Conference, U.S. Dept. of Commerce, March 17-20, 1991, pp. 335-351.
This report is part of the RAND Corporation Reprint series. The Reprint was a product of the RAND Corporation from 1992 to 2011 that represented previously published journal articles, book chapters, and reports with the permission of the publisher. RAND reprints were formally reviewed in accordance with the publisher's editorial policy and compliant with RAND's rigorous quality assurance standards for quality and objectivity. For select current RAND journal articles, see External Publications.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.