Semiparametric Distribution Regression with Instruments and Monotonicity

24 Pages Posted: 11 Dec 2022

Date Written: December 7, 2022


This paper proposes IV-based estimators for the semiparametric distribution regression model in the presence of an endogenous regressor, which are based on an extension of IV probit estimators. We discuss the causal interpretation of the estimators and two methods (monotone rearrangement and isotonic regression) to ensure a monotonically increasing distribution function. Asymptotic properties and simulation evidence are provided. An application to wage equations reveals statistically significant and heterogeneous differences to the inconsistent OLS-based estimator.

Keywords: Control function, endogeneity, isotonic regression, wage equations

JEL Classification: C26, J30

Suggested Citation

Wied, Dominik, Semiparametric Distribution Regression with Instruments and Monotonicity (December 7, 2022). Available at SSRN: or

Dominik Wied (Contact Author)

University of Cologne ( email )

Cologne, 50923

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