This is a more complete, detailed version of an earlier post of mine.

I have extracted monthly, county-level data for EMPSTAT and LABFORCE from 2010-2017. I am using CPSIDP to help track an individual’s status from month-to-month, where applicable. I create a dummy variable if that individual went from “not in labor force” to “employed” in adjacent months, and sum these dummy variables by year to produce unweighted labor force flows.

I am wondering how to properly incorporate WTFINL into this procedure. From another post, it was suggested to divide the sample weight in each year by the number of sample years in the panel. Can these adjusted weights then be applied to the dummy variables I mentioned above? (before summing by year, of course).

For example, I can first sum the adjusted weights by month, for a particular year. Next, I can divide each individual WTFINL (for each CPSIDP) by these monthly totals, for the appropriate month. Finally, I can apply this result (again, for each CPSIDP) to the dummy variables of interest, then sum by year. Any insight into if/how this approach can be improved is greatly appreciated.

References:

(1) Is there longitudinal weight available for analyzing person across different monthly files?

(2) https://cps.ipums.org/cps/resources/l… (provided in response to a similar, recent post of mine; this was very helpful, and much appreciated!)