102 Pages Posted: 31 Aug 2010 Last revised: 27 Sep 2010
Date Written: September 24, 2010
This chapter discusses identification of common selection models of the labor market. We start with the classic Roy model and show how it can be identified with exclusion restrictions. We then extend the argument to the generalized Roy model, treatment effect models, duration models, search models, and dynamic discrete choice models. In all cases, key ingredients for identification are exclusion restrictions and support conditions.
Keywords: Identification, Roy model, discrete choice, selection, treatment effects
JEL Classification: C14, C51, J22, J24
Suggested Citation: Suggested Citation
French, Eric and Taber, Christopher, Identification of Models of the Labor Market (September 24, 2010). FRB of Chicago Working Paper No. 2010-08. Available at SSRN: https://ssrn.com/abstract=1668790 or http://dx.doi.org/10.2139/ssrn.1668790
By David Kiss