This note describes the use of a simple procedure to correct for attrition due to observables in household panel survey: inverse probability weights. The procedure involves estimating two probit regressions, one with and one without variables that are significantly associated with attrition, and using the ratio of predicted probabilities from these regressions to reweight the observations. The procedure is illustrated in Stata using data from part of the CPRC-DATA-IFPRI panel in rural Bangladesh.
Toolkit Note. Chronic Poverty Research Centre, London, UK, 12 pp.