Interpretation of negative sample selection effects in wage offer equations

John Ermisch and Robert Wright

Applied Economics Letters, 1994, vol. 1, issue 11, 187-189

Abstract: The finding of negative sample selection effects in estimated wage offer equations is often viewed as being 'problematic', resulting from misspecification of the wage and selection processes. This note shows that negative sample selection effects are plausible in the context of Heckman's reservation wage model of labour supply. Therefore, such findings need not necessarily be cause for concern.

Date: 1994
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DOI: 10.1080/135048594357844

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