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This paper demonstrates how nesting and non-nesting analytical strategies provide different answers regarding the comparative
utility of theoretical models. This paper demonstrates this incompatibility by testing the empirical efficacy of Goldthorpe's
and Wright's class schemes in explaining earnings inequality in Israel. These models are non-nested, because while they partially
overlap each other conceptually and empirically, neither can be written as a parametric restriction of the other. As they
are non-nested, we cannot test each model against the other by using the conventional sociological approach to hypotheses
testing. For the sake of demonstration, however, we show results obtained from the conventional Ordinary Least Squares regression
models with conventional Baysian Information Coefficient statistic, serving as criterion for a decision rule. Wright's model was found to be more significant in explaining earnings
variations in Israeli society. Yet when we used two models of non-nested specification tests (the Cox-Pesaran model and the
J test) to examine each model's unique contribution, neither of these models were able to reject the rival hypothesis.
This revised version was published online in June 2006 with corrections to the Cover Date. 相似文献
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