Nonseparable Sample Selection Models with Censored Selection Rules: An Application to Wage Decompositions

Ivan Fernandez-Val (), Aico van Vuuren and Francis Vella

No 11294, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We consider identification and estimation of nonseparable sample selection models with censored selection rules. We employ a control function approach and discuss different objects of interest based on (1) local effects conditional on the control function, and (2) global effects 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 identification for these different objects and suggest strategies for estimation. 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.

Keywords: sample selection; nonseparable models; control function; quantile and distribution regression (search for similar items in EconPapers)
JEL-codes: C14 C21 C24 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2018-01
New Economics Papers: this item is included in nep-ecm
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Citations: View citations in EconPapers (4)

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