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Nonseparable sample selection models with censored selection rules

Author

Listed:
  • Ivan Fernandez-Val

    (Institute for Fiscal Studies and Boston University)

  • Aico van Vuuren

    (Institute for Fiscal Studies)

  • Francis Vella

    (Institute for Fiscal Studies and Georgetown University)

Abstract

We consider identi?cation and estimation of nonseparable sample selection models with censored selection rules. We employ a control function approach and discuss di?erent objects of interest based on (1) local e?ects conditional on the control function, and (2) global e?ects obtained from integration over ranges of values of the control function. We provide conditions under which these objects are appropriate for the total population. We also present results regarding the estimation of counterfactual distributions. We derive conditions for identi?cation for these di?erent objects and suggest strategies for estima-tion. We also provide the associated asymptotic theory. These strategies are illustrated in an empirical investigation of the determinants of female wages and wage growth in the United Kingdom.

Suggested Citation

  • Ivan Fernandez-Val & Aico van Vuuren & Francis Vella, 2018. "Nonseparable sample selection models with censored selection rules," CeMMAP working papers CWP10/18, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:cemmap:10/18
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    Cited by:

    1. Victor Chernozhukov & Iván Fernández‐Val & Whitney Newey & Sami Stouli & Francis Vella, 2020. "Semiparametric estimation of structural functions in nonseparable triangular models," Quantitative Economics, Econometric Society, vol. 11(2), pages 503-533, May.
    2. Matthias Westphal & Daniel A Kamhöfer & Hendrik Schmitz, 2022. "Marginal College Wage Premiums Under Selection Into Employment," The Economic Journal, Royal Economic Society, vol. 132(646), pages 2231-2272.
    3. Newey, Whitney & Stouli, Sami, 2021. "Control variables, discrete instruments, and identification of structural functions," Journal of Econometrics, Elsevier, vol. 222(1), pages 73-88.
    4. Nagasawa, Kenichi, 2020. "Identification and Estimation of Group-Level Partial Effects," The Warwick Economics Research Paper Series (TWERPS) 1243, University of Warwick, Department of Economics.
    5. Biewen, Martin & Fitzenberger, Bernd & Seckler, Matthias, 2020. "Counterfactual quantile decompositions with selection correction taking into account Huber/Melly (2015): An application to the German gender wage gap," Labour Economics, Elsevier, vol. 67(C).

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    More about this item

    Keywords

    Sample selection; nonseparable models; control function; quantile and distribution regression;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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