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Parametric and semiparametric estimation of sample selection models: an empirical application to the female labour force in Portugal

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  • Maria Fraga O. Martins

    (ECARE, Universite Libre Bruxelles and ISEGI. Universidade Nova de Lisboa, Travessa Estevao Pinto, Campolide, 1070-124 Lisboa, Portugal)

Abstract

This paper applies both parametric and semiparametric methods to the estimation of wage and participation equations for married women in Portugal. The semiparametric estimators considered are the two-stage estimators proposed by Newey (1991) and Andrews and Schafgans (1998). The selection equation results are compared using the specification tests proposed by Horowitz (1993), Horowitz and Hardle (1994), and the wage equation results are compared using a Hausman test. Significant differences between the two approaches indicate the inappropriateness of the standard parametric methods to the estimation of the model and for the purpose of policy simulations. The greater departure seems to occur in the range of the low values of the index corresponding to a specific group of women. Copyright © 2001 John Wiley & Sons, Ltd.

Suggested Citation

  • Maria Fraga O. Martins, 2001. "Parametric and semiparametric estimation of sample selection models: an empirical application to the female labour force in Portugal," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(1), pages 23-39.
    • Handle: RePEc:jae:japmet:v:16:y:2001:i:1:p:23-39
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    References listed on IDEAS

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