%0 Report %A Haider, Steven J. %A Jr., Melvin Stephens %T Correcting for Misclassied Binary Regressors Using Instrumental Variables %D 2020 %8 2020 Aug %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 13593 %U https://www.iza.org/publications/dp13593 %X 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. %K instrumental variables %K measurement error %K misclassification