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Let’s Talk About Fixed Effects: Let’s Talk About All the Good Things and the Bad Things

Collischon M, Eberl A (2020)

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Publication Language: English

Publication Type: Journal article, Original article

Publication year: 2020

Journal

URI: https://link.springer.com/article/10.1007/s11577-020-00699-8

DOI: 10.1007/s11577-020-00699-8

Open Access Link: https://doi.org/10.1007/s11577-020-00699-8

Abstract

With the broader availability of panel data, fixed effects (FE) regression models are becoming increasingly important in sociology. However, in some studies the potential pitfalls of these models may be ignored, and common critiques of FE models may not always be applicable in comparison to other methods. This article provides an overview of linear FE models and their pitfalls for applied researchers. Throughout the article, we contrast FE and classical pooled ordinary least squares (OLS) models. We argue that in most cases FE models are at least as good as pooled OLS models. Therefore, we encourage scholars to use FE models if possible. Nevertheless, the limitations of FE models should be known and considered.

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How to cite

APA:

Collischon, M., & Eberl, A. (2020). Let’s Talk About Fixed Effects: Let’s Talk About All the Good Things and the Bad Things. Kölner Zeitschrift für Soziologie und Sozialpsychologie. https://doi.org/10.1007/s11577-020-00699-8

MLA:

Collischon, Matthias, and Andreas Eberl. "Let’s Talk About Fixed Effects: Let’s Talk About All the Good Things and the Bad Things." Kölner Zeitschrift für Soziologie und Sozialpsychologie (2020).

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