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

49 Pages Posted: 6 Feb 2018

See all articles by Iván Fernández‐Val

Iván Fernández‐Val

Boston University - Department of Economics

Aico van Vuuren

VU University Amsterdam - Department of Economics

Francis Vella

Georgetown University; IZA Institute of Labor Economics

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

JEL Classification: C14, C21, C24

Suggested Citation

Fernandez-Val, Ivan and van Vuuren, Aico and Vella, Francis, Nonseparable Sample Selection Models with Censored Selection Rules: An Application to Wage Decompositions. IZA Discussion Paper No. 11294, Available at SSRN: https://ssrn.com/abstract=3117298

Ivan Fernandez-Val (Contact Author)

Boston University - Department of Economics ( email )

270 Bay State Road
Boston, MA 02215
United States

HOME PAGE: http://people.mit.edu/ivanf

Aico Van Vuuren

VU University Amsterdam - Department of Economics ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands

Francis Vella

Georgetown University ( email )

Washington, DC 20057
United States
202-687-5573 (Phone)

HOME PAGE: http://explore.georgetown.edu/people/fgv/

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
38
Abstract Views
238
PlumX Metrics