EconPapers    
Economics at your fingertips  
 

Multinomial Choice and Selectivity

John Dagsvik

Discussion Papers from Statistics Norway, Research Department

Abstract: In this paper we discuss two types of selection problems. The first problem is motivated by labor market analyses such as the estimation of sector-specific wage equations where the sector for which the wages are observed are chosen by the agents. In contrast to previous formulations which usually are based on a probit framework, we assume here that the discrete choice is generated by a multinomial logit model with random coefficients (mixed multinomial logit model). The advantage compared to the multinomial probit setting is that choice sets with many alternatives become almost as easy to handle as the binary case. The second problem we analyze is motivated by studies where the interest is to estimate the effect of for example labor market training programs on the labor market opportunities. Previous works have, to the best of my knowledge, focused solely on the effect of labor market programs on earnings. As in the first case we allow for arbitrarily large choice sets of feasible first stage choices (programs) as well as the second stage choices (labor market status).

Keywords: Selection bias; discrete/continuous choice. (search for similar items in EconPapers)
JEL-codes: C13 C35 (search for similar items in EconPapers)
Date: 2000-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.ssb.no/a/publikasjoner/pdf/DP/dp264.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:ssb:dispap:264

Access Statistics for this paper

More papers in Discussion Papers from Statistics Norway, Research Department P.O.Box 8131 Dep, N-0033 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by L Maasø ().

 
Page updated 2025-04-01
Handle: RePEc:ssb:dispap:264