Dual Selection Criteria with Multiple Alternatives: Migration, Work Status, and Wages

Wim Vijverberg

International Economic Review, 1995, vol. 36, issue 1, 159-85

Abstract: This study develops and implements a new method to account for selectivity bias that results from a two-stage choice with multiple alternatives. The estimation method can handle any number of alternatives at each level, modeled under any distributional assumption, as long as one is able to express the condition for selecting a particular alternative at each level statistically in the form of a single equation. The technique is demonstrated for a situation where people choose one of three regions and one of two work modes. Copyright 1995 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 1995
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Working Paper: Dual selection criteria with multiple alternatives: migration, work status, and wages (1991)
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