Iatrogenic Specification Error: A Cautionary Tale of Cleaning Data

A-Tier
Journal: Journal of Labor Economics
Year: 2005
Volume: 23
Issue: 2
Pages: 235-258

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

It is common practice to use sensible rules of thumb for cleaning data. Measurement error is often the justification for removing (trimming) or recoding (winsorizing) observations where the dependent variable has values that lie outside a specified range. We consider a general measurement error process that nests many plausible models. Analytic results demonstrate that winsorizing and trimming are solutions for a narrow class of error processes. Indeed such procedures can induce or exacerbate bias. Monte Carlo simulations and empirical results demonstrate the fragility of cleaning. Even on root mean square error criteria, we cannot find generalizable justifications for these procedures.

Technical Details

RePEc Handle
repec:ucp:jlabec:v:23:y:2005:i:2:p:235-258
Journal Field
Labor
Author Count
2
Added to Database
2026-01-24