@TechReport{iza:izadps:dp13593, author={Haider, Steven J. and Jr., Melvin Stephens}, title={Correcting for Misclassied Binary Regressors Using Instrumental Variables}, year={2020}, month={Aug}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={13593}, url={https://www.iza.org/publications/dp13593}, abstract={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.}, keywords={instrumental variables;measurement error;misclassification}, }