TY - RPRT AU - Haider, Steven J. AU - Jr., Melvin Stephens TI - Correcting for Misclassied Binary Regressors Using Instrumental Variables PY - 2020/Aug/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 13593 UR - https://www.iza.org/index.php/publications/dp13593 AB - Estimators that exploit an instrumental variable to correct for misclassification in a binary regressor typically assume that the misclassification rates are invariant across all values of the instrument. We show that this assumption is invalid in routine empirical settings. We derive a new estimator that is consistent when misclassification rates vary across values of the instrumental variable. In cases where identification is weak, our moments can be combined with bounds to provide a confidence set for the parameter of interest. KW - instrumental variables KW - measurement error KW - misclassification ER -