IDEAS home Printed from https://ideas.repec.org/a/sbe/breart/v14y1994i1a2979.html
   My bibliography  Save this article

The Wage Rate Estimation Using the Heckman Procedure

Author

Listed:
  • Kassouf, Ana Lucia

Abstract

This paper estimates wage rates using the Heckman Procedure and a traditional method. The estimation becomes necessary when the analysis requires a measure of the individual's opportunity cost of time. Since a large fraction of the adults in the sample do not participate in the labor market, the simple estimation by ordinary least squares would cause bias in the coefficients. Labor force participation and the wage determination equations were estimated for men and women from 16 to 71 years old. Most of the coefficients were statistically significant at 10% level and presented the expected signs. It was found an upward biased (in absolute value) estimate for male workers and a downward biased (in absolute value) estimate for the female workers when using the traditional method of estimation.

Suggested Citation

  • Kassouf, Ana Lucia, 1994. "The Wage Rate Estimation Using the Heckman Procedure," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 14(1), April.
    • Handle: RePEc:sbe:breart:v:14:y:1994:i:1:a:2979
    as

    Download full text from publisher

    File URL: https://periodicos.fgv.br/bre/article/view/2979
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    2. Ben Senauer & David Sahn & Harold Alderman, 1986. "The Effect of the Value of Time on Food Consumption Patterns in Developing Countries: Evidence from Sri Lanka," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(4), pages 920-927.
    3. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Juliana Kikuchi Van Zaist & Luciano Nakabashi & Márcio A. Salvato, 2009. "Retornos privados de educação individual no Paraná," Working Papers 0097, Universidade Federal do Paraná, Department of Economics.
    2. Rodolfo Hoffmann & Ana Lucia Kassouf, 2005. "Deriving conditional and unconditional marginal effects in log earnings equations estimated by Heckman's procedure," Applied Economics, Taylor & Francis Journals, vol. 37(11), pages 1303-1311.
    3. Letícia Xander Russo & Joilson Dias, 2016. "The Health Influence On Returns To Education In Brazil: A Nonlinear Approach," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 200, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    4. Ferraz, Diogo & Ribeiro de Oliveira, Fabíola Cristina, 2018. "Impact of the National Professional Qualification Program (PNQ) on Income: An Econometric Analysis in Piracicaba/SP-Brazil," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 28(2), pages 105-123.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Golder, Stefan M., 2000. "Endowment or Discrimination? An Analysis of Immigrant-Native Earnings Differentials in Switzerland," Kiel Working Papers 967, Kiel Institute for the World Economy (IfW Kiel).
    2. Sonia Bhalotra, 2007. "Is Child Work Necessary?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(1), pages 29-55, February.
    3. Fernández-Sainz, Ana I. & Rodríguez-Póo, Juan M., 2010. "An Empirical Investigation of Parametric and Semiparametric Estimation Methods in Sample Selection Models = Investigación empírica de métodos de estimación paramétricos y semiparamétricos de modelos d," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 10(1), pages 99-120, December.
    4. Senauer, Benjamin, 1988. "The Impact Of The Value Of Women'S Time On Food And Nutrition In Developing Countries," Staff Papers 14144, University of Minnesota, Department of Applied Economics.
    5. Erik Mathijs & Marian Rizov, 2001. "Survival and Growth of Individual Farm Enterprises in Transition Economies: Empirical Evidence from Hungary," LICOS Discussion Papers 10101, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    6. Nick Drydakis, 2010. "Ethnic Differences in Housing Opportunities in Athens," Urban Studies, Urban Studies Journal Limited, vol. 47(12), pages 2573-2596, November.
    7. Nawata, Kazumitsu, 1995. "Estimation of sample-selection models by the maximum likelihood method," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 39(3), pages 299-303.
    8. Guilhem Bascle, 2008. "Controlling for endogeneity with instrumental variables in strategic management research," Post-Print hal-00576795, HAL.
    9. Teulings, Coen N, 1995. "The Wage Distribution in a Model of the Assignment of Skills to Jobs," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 280-315, April.
    10. A. Rashad Abdel†Khalik, 1990. "The jointness of audit fees and demand for MAS: A self†selection analysis," Contemporary Accounting Research, John Wiley & Sons, vol. 6(2), pages 295-322, March.
    11. Jan Diebecker & Friedrich Sommer, 2017. "The impact of corporate sustainability performance on information asymmetry: the role of institutional differences," Review of Managerial Science, Springer, vol. 11(2), pages 471-517, March.
    12. El-Osta, Hisham S. & Ahearn, Mary Clare, 1996. "Estimating the Opportunity Cost of Unpaid Farm Labor for U.S. Farm Operators," Technical Bulletins 156784, United States Department of Agriculture, Economic Research Service.
    13. María Arrazola & José de Hevia & Gonzalo Mato, 1992. "Determinantes de la distribución de dividendos," Investigaciones Economicas, Fundación SEPI, vol. 16(2), pages 235-258, May.
    14. Hardy, Daniel C., 1996. "Market reaction to changes in German official interest rates," Discussion Paper Series 1: Economic Studies 1996,04, Deutsche Bundesbank.
    15. Dominik Schreyer, 2019. "Football spectator no-show behaviour in the German Bundesliga," Applied Economics, Taylor & Francis Journals, vol. 51(45), pages 4882-4901, September.
    16. Fors, Gunnar & Zejan, Mario, 1996. "Overseas R&D by Multinationals in foreign Centers of Excellence," SSE/EFI Working Paper Series in Economics and Finance 111, Stockholm School of Economics.
    17. Evens Salies & Catherine Waddams, 2003. "Pricing structure in the deregulated UK electricity market," SciencePo Working papers Main hal-03592457, HAL.
    18. MacKinnon, J G, 1989. "Heteroskedasticity-Robust Tests for Structural Change," Empirical Economics, Springer, vol. 14(2), pages 77-92.
    19. Fenech, Jean-Pierre & Skully, Michael & Xuguang, Han, 2014. "Franking credits and market reactions: Evidence from the Australian convertible security market," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 32(C), pages 1-19.
    20. Michelle Sheran Sylvester, 2007. "The Career and Family Choices of Women: A Dynamic Analysis of Labor Force Participation, Schooling, Marriage and Fertility Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 367-399, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sbe:breart:v:14:y:1994:i:1:a:2979. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Núcleo de Computação da FGV EPGE (email available below). General contact details of provider: https://edirc.repec.org/data/sbeeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.