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Interpretation of negative sample selection effects in wage offer equations

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  • John Ermisch
  • Robert Wright

Abstract

The finding of negative sample selection effects in estimated wage offer equations is often viewed as being 'problematic', resulting from misspecification of the wage and selection processes. This note shows that negative sample selection effects are plausible in the context of Heckman's reservation wage model of labour supply. Therefore, such findings need not necessarily be cause for concern.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 1 (1994)
Issue (Month): 11 ()
Pages: 187-189

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Handle: RePEc:taf:apeclt:v:1:y:1994:i:11:p:187-189

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Cited by:
  1. Sara de la Rica & Arantza Ugidos, 1995. "¿Son las diferencias en capital humano determinantes en las diferencias salariales observadas entre hombres y mujeres?," Investigaciones Economicas, Fundación SEPI, Fundación SEPI, vol. 19(3), pages 395-414, September.
  2. Guyonne Kalb & Rosanna Scutella, 2002. "Estimation of Wage Equations in Australia: Allowing for Censored Observations of Labour Supply," Melbourne Institute Working Paper Series wp2002n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  3. Bargain, Olivier & Orsini, Kristian, 2006. "Beans for Breakfast? How Exportable Is the British Workfare Model?," IZA Discussion Papers 2025, Institute for the Study of Labor (IZA).
  4. Choe, Chung, 2009. "Determinants of Labor Market Outcomes of Disabled Men Before and After the Americans with Disabilities Act of 1990," IRISS Working Paper Series, IRISS at CEPS/INSTEAD 2009-07, IRISS at CEPS/INSTEAD.
  5. Paul, Maureen, 2006. "A cross-section analysis of the fairness-of-pay perception of UK employees," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(2), pages 243-267, April.
  6. Fersterer, Josef & Winter-Ebmer, Rudolf, 1999. "Are Austrian Returns to Education Falling Over Time?," IZA Discussion Papers 72, Institute for the Study of Labor (IZA).
  7. Guyonne Kalb & Rosanna Scutella, 2003. "Wage and Employment Rates in New Zealand from 1991 to 2001," Melbourne Institute Working Paper Series wp2003n13, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  8. Wolf, Elke, 2002. "Lower wage rates for fewer hours? A simultaneous wage-hours model for Germany," Labour Economics, Elsevier, vol. 9(5), pages 643-663, November.
  9. Arabsheibani, Reza & Mussurov, Altay, 2006. "Returns to Schooling in Kazakhstan: OLS and Instrumental Variables Approach," IZA Discussion Papers 2462, Institute for the Study of Labor (IZA).
  10. Helmut Mahringer & Christine Zulehner, 2012. "Child-Care Costs and Mothers' Employment Rates. An Empirical Analysis for Austria," WIFO Working Papers, WIFO 429, WIFO.

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