Hi,
I am trying to do a wage regression (ln(wage) dependent on several
individual characteristics like age, education, region, etc.) based on
household survey data and now I don't know if and why sample weights
(here: sample inflation factors, multipliers to inflate the sample to
the total population) should be used in the regression and if so, how
this is done.
I saw some references where they discussed the issue but I didn't
really understand why the one way or the other is preferred.
Theoretically, I think one could clone the individual observations
(single household) to equal the respective sample inflation factor and
adding an error term from the distribution of the subgroup sample to
each clone. But practically, the size of the data would not be
manageable.
Can anyone point me to a gentle introduction reference regarding this
issues or give me some clues?
Many thanks,
Bob
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