Selection Correction in Panel Data Models: An Application to Labour Supply and Wages

Christian Dustmann and María Engracia Rochina-Barrachina ()
Additional contact information
María Engracia Rochina-Barrachina: Universidad de Valencia
Authors registered in the RePEc Author Service: Maria Engracia Rochina Barrachina

No 162, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In recent years a number of panel estimators have been suggested for sample selection models, where both the selection equation and the equation of interest contain individual effects which are correlated with the explanatory variables. We review and compare some of these estimators, and apply them to estimating the return to actual labour market experience for females, using a panel of twelve years. All these estimators rely on the assumption of strict exogeneity of regressors in the equation of interest, conditional on individual specific effects and the selection mechanism. This assumption is likely to be violated in many applications. Also, life history variables are often measured with error in survey data sets, because they contain a retrospective component. We show how non-strict exogeneity and measurement error can be taken into account within the estimation methods discussed.

Keywords: estimation of wage equations; female labour supply; Panel data sample selection estimators (search for similar items in EconPapers)
JEL-codes: C33 C34 J3 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2000-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

Published - published as 'Selection correction in panel data models: An application to the estimation of females' wage equations' in: Econometrics Journal, 2007, 10 (2), 263 - 293

Downloads: (external link)
https://docs.iza.org/dp162.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp162

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().