New model reveals hidden biases in wage estimations, impacting household incomes.
The article presents a new way to estimate complex panel data models that include time and space factors. By using a special formula, researchers can better understand how these factors affect outcomes like wages. They found that getting the initial observations right is crucial for accurate results, especially when it comes to spatial relationships. The study shows that if the spatial structure is not correctly specified, the estimates can be way off. This new method helps researchers account for these factors and get more reliable results when studying dynamic patterns in data.