A Comment on Variance Decomposition and Nesting Effects in Two- and Three-level Designs

IZA DP No. 3178A Comment on Variance Decomposition andNesting Effects in Two- and Three-Level DesignsSpyros KonstantopoulosNovember 2007Forschungsinstitutzur Zukunft der ArbeitInstitute for the Studyof LaborDISCUSSION PAPER SERIES A Comment on Variance Decomposition and Nesting Effects in Two- and Three-Level Designs Spyros Konstantopoulos Northwestern University and IZA Discussion Paper No. 3178 November 2007 IZA P.O. Box 7240 53072 Bonn Germany Phone: +49-228-3894-0 Fax: +49-228-3894-180 E-mail: iza@iza.org Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. IZA Discussion Papers often ...