Chamberlain's approach to unobserved effects models

In linear panel analysis, it can be desirable to estimate the magnitude of the fixed effects, as they provide measures of the unobserved components. For instance, in wage equation regressions, Fixed Effects capture ability measures that are constant over time, such as motivation. 's approach to unobserved effects models is a way of estimating the linear unobserved effects, under Fixed Effect (rather than random effects) assumptions, in the following unobserved effects model

Chamberlain's approach to unobserved effects models

In linear panel analysis, it can be desirable to estimate the magnitude of the fixed effects, as they provide measures of the unobserved components. For instance, in wage equation regressions, Fixed Effects capture ability measures that are constant over time, such as motivation. 's approach to unobserved effects models is a way of estimating the linear unobserved effects, under Fixed Effect (rather than random effects) assumptions, in the following unobserved effects model